Amiti, Mary; Itskhoki, Oleg; Konings, Jozef - In: American Economic Review 104 (2014) 7, pp. 1942-78
Large exporters are simultaneously large importers. We show that this pattern is key to understanding low aggregate exchange rate pass-through as well as the variation in pass-through across exporters. We develop a theoretical framework with variable markups and imported inputs, which predicts...