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EU countries closely regulate pharmaceutical prices whereas the U.S. does not. This paper shows how price constraints affect the profitability, stock returns, and R&D spending of EU and U.S. firms. Compared to EU firms, U.S. firms are more profitable, earn higher stock returns, and spend more on...
Persistent link: https://www.econbiz.de/10012465985
This paper examines the welfare effects of intellectual property protection, accounting for firms' optimal responses to legal environments and technological innovation. I examine firms' use of indirect price discrimination in response to U.S. copyright law, which effectively prevents direct...
Persistent link: https://www.econbiz.de/10012467000
We document how supply-chain pressures, household inflation expectations, and firm pricing power interacted to induce the pandemic-era surge in consumer price inflation in the euro area. Initially, supply-chain pressures increased inflation through a cost-push channel and raised inflation...
Persistent link: https://www.econbiz.de/10014421216
study uses Chinese firm-product-level export data to examine how an AD action, a very targeted trade policy against a … specific product in a specific export destination, affects a multiproduct firms' price and quantity decisions across its other … products and export destinations. We find robust evidence for a new phenomenon we call within-firm cross-product trade …
Persistent link: https://www.econbiz.de/10012696430
assumptions have until very recently usually been made about it. We refer to the relation of exchange rate changes, export prices … in the exchange rate might also alter the relationship between the export price and the domestic price of a given product …
Persistent link: https://www.econbiz.de/10012478947
narrowly defined goods that differ substantially with the characteristics of firms and export markets. We control for selection … into export markets using a three-stage estimator. We have three main results. First, we find that highly productive and …. Third, the correlation between distance and product-level export prices is largely due to a composition effect …
Persistent link: https://www.econbiz.de/10012460951
Subsidies to consumers may cause firms to charge higher prices, which offsets consumer benefits from subsidies. We study a subsidy program design that mitigates such price increases by making products' eligibility for a subsidy dependent on firms' commitment to price ceilings. To quantify the...
Persistent link: https://www.econbiz.de/10012510538
heating reform in China that replaced a commonly-used fixed-payment system with individually-metered pricing. Using staggered …
Persistent link: https://www.econbiz.de/10012482034
The accession countries to the euro area are increasingly binding their economic activity, external and internal, to the euro area countries. One aspect of this phenomenon concerns the currency invoicing of international trade transactions, where accession countries have reduced their use of the...
Persistent link: https://www.econbiz.de/10012467023
In our European Economic Review (2002) paper, we used pre-1998 data on countries participating in and leaving currency unions to estimate the effect of currency unions on trade using (then-) conventional gravity models. In this paper, we use a variety of empirical gravity models to estimate the...
Persistent link: https://www.econbiz.de/10012457134