Showing 1 - 10 of 43
import prices. One explanation is local distribution costs. Here we consider an alternative, complementary explanation based … case the pass-through to import prices is complete, while the pass-through to consumer prices is zero. …
Persistent link: https://www.econbiz.de/10005498013
theoretical framework that combines variable markups due to strategic complementarities and endogenous choice to import … intermediate inputs. The model predicts that firms with high import shares and high market shares have low exchange rate pass … destination and imports by source country. We confirm that import intensity and market share are the prime determinants of pass …
Persistent link: https://www.econbiz.de/10011083651
We examine firm's pricing-to-market decisions in vertically differentiated industries featuring a large number of firms that compete monopolistically in the quality space. Firms sell goods of heterogeneous quality to consumers with non-homothetic preferences that differ in their income and thus...
Persistent link: https://www.econbiz.de/10011083682
A sizeable literature examines exchange rate pass-through to disaggregated import prices but very few micro …-components and the role of switches between import and export parity pricing of maize is investigated and found significant for five …
Persistent link: https://www.econbiz.de/10011084277
This paper investigates the heterogeneous response of exporters to real exchange rate fluctuations due to product quality. We model theoretically the effects of real exchange rate changes on the optimal price and quantity responses of firms that export multiple products with heterogeneous levels...
Persistent link: https://www.econbiz.de/10011084667
Import competition from China is pervasive in the sense that for many good categories, the competitive environment that … 2005 to 2008 on the prices charged by US domestic producers. In a panel spanning the period from 1994 to 2010 and including … up to 519 manufacturing sectors, import price changes of Chinese goods pass into US producer prices at an average rate of …
Persistent link: https://www.econbiz.de/10011145441
In this Paper we show that a currency area can be a self-validating optimal policy regime, even when monetary unification does not foster real economic integration and intra-industry trade. This is because profit-maximizing producers in a currency area adopt endogenous pricing strategies that...
Persistent link: https://www.econbiz.de/10005661477
We analyze the policy trade-offs generated by local currency price stability of imports in economies where upstream producers strategically interact with downstream firms selling the final goods to consumers. We study the effects of staggered price setting at the downstream level on the optimal...
Persistent link: https://www.econbiz.de/10005661514
to charge higher prices vis-a-vis the increased uncertainty in the export market. As higher import prices reduce the …
Persistent link: https://www.econbiz.de/10005662226
The U.S. dollar holds a dominant place in the invoicing of international trade, along two complementary dimensions. First, most U.S. exports and imports invoiced in dollars. Second, trade flows that do not involve the United States are also substantially invoiced in dollars, an aspect that has...
Persistent link: https://www.econbiz.de/10005791509