We present a new approach to study empirically the effect of the introduction of the euro on currency invoicing. Our … approach uses a compositional multinomial logit model, in which currency choice depends on the characteristics of both the … currency and the country. We use unique quarterly panel data of Norwegian imports from OECD countries for the 1996-2006 period …

likely to be invoiced in the importer’s currency. We offer a theoretical explanation for the empirical link between … absent from existing models despite its empirical relevance. -- Invoicing currency ; vehicle currency ; pass …