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Import competition from China is pervasive in the sense that for many good categories, the competitive environment that … up to 519 manufacturing sectors, import price changes of Chinese goods pass into US producer prices at an average rate of … 0.7, while import price changes that can be traced back to exchange rate movements of other trade partners only have …
Persistent link: https://www.econbiz.de/10011145441
firm-level market shares and price complementarities affect pass-through decisions. Using micro-data from U.S. import … are also the ones that react the least to changing competitor prices. Second, the response of import Prices to exchange …
Persistent link: https://www.econbiz.de/10011276376
large deviations from the law of one price and incomplete pass-through on import prices. Consistent with the received wisdom …
Persistent link: https://www.econbiz.de/10005124101
This Paper develops a model of endogenous exchange rate pass-through within an open economy macroeconomic framework, where both pass-through and the exchange rate are simultaneously determined, and interact with one another. Pass-through is endogenous because firms choose the currency in which...
Persistent link: https://www.econbiz.de/10005124428
import prices. One explanation is local distribution costs. Here we consider an alternative, complementary explanation based … case the pass-through to import prices is complete, while the pass-through to consumer prices is zero. …
Persistent link: https://www.econbiz.de/10005498013
Understanding how import prices adjust to exchange rates helps anticipate inflation effects and monetary policy … responses. This paper examines exchange rate passthrough to the monthly import price index in South Africa during 1980-2009. A … structural model, yet without neglecting the long-run relationships between prices or the effects of previous import price …
Persistent link: https://www.econbiz.de/10008784768
value added; the lower the import content of consumption, the higher the exchange rate volatility implied by optimal …
Persistent link: https://www.econbiz.de/10005114386
This paper provides an introduction to the recent literature on macroeconomic stabilization in closed and open economies. We present a stylized theoretical framework, and illustrate its main properties with the help of an intuitive graphical apparatus. Among the issues we discuss: optimal...
Persistent link: https://www.econbiz.de/10005114457
theoretical framework that combines variable markups due to strategic complementarities and endogenous choice to import … intermediate inputs. The model predicts that firms with high import shares and high market shares have low exchange rate pass … destination and imports by source country. We confirm that import intensity and market share are the prime determinants of pass …
Persistent link: https://www.econbiz.de/10011083651
We examine firm's pricing-to-market decisions in vertically differentiated industries featuring a large number of firms that compete monopolistically in the quality space. Firms sell goods of heterogeneous quality to consumers with non-homothetic preferences that differ in their income and thus...
Persistent link: https://www.econbiz.de/10011083682