A unified framework for analysing price interdependence, innovative activity and exchange rate pass-through

This paper develops an international oligopoly model in which domestic and foreign firms simultaneously choose their price and innovation strategies under the assumption of non-zero conjectural variations in relation to their competitors’ price changes. The model captures the links between the exchange rate, foreign and domestic firms’ prices and investment in process innovation and provides a unified framework for analysing exchange rate pass-through.

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Year of publication:	2014
Authors:	Brissimis, Sophocles N. ; Kosma, Theodora S.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 122.2014, 2, p. 159-162
Publisher:	Elsevier
Subject:	Exchange rate pass-through \| Conjectural variations \| Translog expenditure function \| Innovative activity

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Type of publication:	Article
Classification:	F39 - International Finance. Other ; L13 - Oligopoly and Other Imperfect Markets ; O31 - Innovation and Invention: Processes and Incentives
Source:	RePEc - Research Papers in Economics

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