Financial constraints, firm entry, and exchange rate pass-through

Using a heterogeneous firm model with firm entry and endogenous markups, I study how the financial constraints of exporting firms affect exchange rate pass-through behaviors. I find that the financial constraints increase the degree of exchange rate pass-through.

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Year of publication:	2014
Authors:	Kosaka, Michiru Sakane
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 125.2014, 1, p. 143-147
Publisher:	Elsevier
Subject:	Exchange rate pass-through \| Firm entry \| Heterogeneous firm \| Endogenous markup \| Financial constraints

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Type of publication:	Article
Classification:	E44 - Financial Markets and the Macroeconomy ; F31 - Foreign Exchange ; F41 - Open Economy Macroeconomics
Source:	RePEc - Research Papers in Economics

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