Korhonen, Marko; Vilmi, Lauri - In: International Economics Letters 3 (2014) 1, pp. 5-11
We present a pricing-to-market model, in which the average mark-up depends on the foreign competition. We propose that the exchange rate changes affect the degree of competition and this effect increases exchange rate pass-through to the import prices. We test the implications of our model on 10...
