Author: Raphael Auer
Publisher:
ISBN:
Category : Exchange rate pass-through
Languages : en
Pages : 0
Book Description
We study firm-level pricing behavior through the lens of exchange rate pass-through and provide new evidence on how firm-level market shares and price complementarities affect pass-through decisions. Using micro-data from U.S. import prices, we identify two facts: First, exactly the firms that react the most with their prices to changes in their own costs are also the ones that react the least to changing competitor prices. Second, the response of import Prices to exchange rate changes is U-shaped in market share while it is hump-shaped in response to competitor prices. We show that both facts are consistent with a model based on Dornbusch (1987) that generates variable markups through a nested-CES demand system. Finally, based on the model, we find that direct cost pass-through and price complementarities play approximately equally important roles in determining pass-through but also partly offset each other. This suggests that equilibrium feedback effects in pricing are large. Omission of either channel in an empirical analysis results in a failure to explain how market structure affects price-setting in industry equilibrium.
Market Structure and Exchange Rate Pass-through
Author: Raphael Auer
Publisher:
ISBN:
Category : Exchange rate pass-through
Languages : en
Pages : 0
Book Description
We study firm-level pricing behavior through the lens of exchange rate pass-through and provide new evidence on how firm-level market shares and price complementarities affect pass-through decisions. Using micro-data from U.S. import prices, we identify two facts: First, exactly the firms that react the most with their prices to changes in their own costs are also the ones that react the least to changing competitor prices. Second, the response of import Prices to exchange rate changes is U-shaped in market share while it is hump-shaped in response to competitor prices. We show that both facts are consistent with a model based on Dornbusch (1987) that generates variable markups through a nested-CES demand system. Finally, based on the model, we find that direct cost pass-through and price complementarities play approximately equally important roles in determining pass-through but also partly offset each other. This suggests that equilibrium feedback effects in pricing are large. Omission of either channel in an empirical analysis results in a failure to explain how market structure affects price-setting in industry equilibrium.
Publisher:
ISBN:
Category : Exchange rate pass-through
Languages : en
Pages : 0
Book Description
We study firm-level pricing behavior through the lens of exchange rate pass-through and provide new evidence on how firm-level market shares and price complementarities affect pass-through decisions. Using micro-data from U.S. import prices, we identify two facts: First, exactly the firms that react the most with their prices to changes in their own costs are also the ones that react the least to changing competitor prices. Second, the response of import Prices to exchange rate changes is U-shaped in market share while it is hump-shaped in response to competitor prices. We show that both facts are consistent with a model based on Dornbusch (1987) that generates variable markups through a nested-CES demand system. Finally, based on the model, we find that direct cost pass-through and price complementarities play approximately equally important roles in determining pass-through but also partly offset each other. This suggests that equilibrium feedback effects in pricing are large. Omission of either channel in an empirical analysis results in a failure to explain how market structure affects price-setting in industry equilibrium.
Exchange Rate Pass-through and Market Structure in a Multi-country World
Author: Kanda Naknoi
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
The Impact of Domestic Market Structure on Exchange Rate Pass-through
Author: Ahmed H. Mohamed
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 56
Book Description
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 56
Book Description
An Empirical Assessment of the Exchange Rate Pass-through in Mozambique
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1513573691
Category : Business & Economics
Languages : en
Pages : 34
Book Description
Determining the magnitude and speed of the exchange rate passthrough (ERPT) to inflation has been of paramount importance for policy-makers in developed and emerging economies. This paper estimates the exchange rate passthrough in Mozambique using econometric techniques on a sample spanning from 2001 to 2019. Results suggest that the ERPT is assymetric, sizable and fast, with 50 percent of the exchange rate variations passing through to prices in less than six months. Policy-makers should continue to pursue low and stable inflation and develop a strong track record of prudent macroeconomic policies for the ERPT to decline.
Publisher: International Monetary Fund
ISBN: 1513573691
Category : Business & Economics
Languages : en
Pages : 34
Book Description
Determining the magnitude and speed of the exchange rate passthrough (ERPT) to inflation has been of paramount importance for policy-makers in developed and emerging economies. This paper estimates the exchange rate passthrough in Mozambique using econometric techniques on a sample spanning from 2001 to 2019. Results suggest that the ERPT is assymetric, sizable and fast, with 50 percent of the exchange rate variations passing through to prices in less than six months. Policy-makers should continue to pursue low and stable inflation and develop a strong track record of prudent macroeconomic policies for the ERPT to decline.
Exchange rate pass-through and market structure
Author: Alan P. Kirman
Publisher:
ISBN:
Category :
Languages : de
Pages : 19
Book Description
Publisher:
ISBN:
Category :
Languages : de
Pages : 19
Book Description
Exchange Rate Pass-through and Market Structure
Author: A. P. Kirman
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 36
Book Description
Publisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 36
Book Description
Exchange Rates and Prices
Author: William R. Smith
Publisher: Routledge
ISBN: 135175131X
Category : Business & Economics
Languages : en
Pages : 212
Book Description
Originally published in 1996. This study looks at the impact of exchange rate fluctuation on the pricing practices of foreign industries that import into the United States market. It presents several studies of the pass-through behaviour of over 100 disaggregated commodity groups with bi-lateral exchange rates. The book presents analysis of specific competitors and their individual pricing responses to exchange rate changes, adding significantly to pricing theory as well as being useful for marketers in predicting business responses.
Publisher: Routledge
ISBN: 135175131X
Category : Business & Economics
Languages : en
Pages : 212
Book Description
Originally published in 1996. This study looks at the impact of exchange rate fluctuation on the pricing practices of foreign industries that import into the United States market. It presents several studies of the pass-through behaviour of over 100 disaggregated commodity groups with bi-lateral exchange rates. The book presents analysis of specific competitors and their individual pricing responses to exchange rate changes, adding significantly to pricing theory as well as being useful for marketers in predicting business responses.
Exchange Rates and Macroeconomic Dynamics
Author: P. Karadeloglou
Publisher: Springer
ISBN: 0230582699
Category : Business & Economics
Languages : en
Pages : 255
Book Description
This book looks at the PPP persistence puzzle, and econometric aspects of exchange rate dynamics and their implications. It also explores the importance of exchange rate dynamics in the pass-through effects (PTE) and the econometric aspects of the exchange rates dynamics linked to structural shocks on different economies.
Publisher: Springer
ISBN: 0230582699
Category : Business & Economics
Languages : en
Pages : 255
Book Description
This book looks at the PPP persistence puzzle, and econometric aspects of exchange rate dynamics and their implications. It also explores the importance of exchange rate dynamics in the pass-through effects (PTE) and the econometric aspects of the exchange rates dynamics linked to structural shocks on different economies.
Product Differentiation, Market Structure and Exchange Rate Passthrough
Author: Stephen Martin
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 52
Book Description
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 52
Book Description
Exchange rate fluctuations, market structure and the pass-through relationship
Author: Inĩgo Herguera
Publisher:
ISBN:
Category :
Languages : de
Pages : 31
Book Description
Publisher:
ISBN:
Category :
Languages : de
Pages : 31
Book Description