We analyze the role of information for price and output adjustment when competitive firms with rational expectations cannot directly distinguish between industrywide and firm-specific cost disturbances. Firms may become informed about industrywide cost conditions by acquiring information at a...

The existing evidence on the volume effects of exchange rate risk and exchange rate regime choice is examined. The analysis involves estimating the effects of cross-country differences in exchange rate regime on export and import elasticities using a continuous measure of the degree of exchange...