State dependent pricing, invoicing currency, and exchange rate pass-through.

We analyze exchange rate pass-through and volatility of import prices in a dynamic framework where firms are subject to menu costs and decide on price adjustments in response to exchange rate innovations. The exchange rate pass-through and import price volatility then depend on the invoicing currenc...

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Publicado en:Journal of International Economics Vol. 70; no. 1; pp. 177 - 197
Autores principales: Flodén, Martin, Wilander, Fredrik
Formato: Artículo
Publicado: Elsevier Science September 2006
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1016/j.jinteco.2005.08.002
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        atl: State dependent pricing, invoicing currency, and exchange rate pass-through.
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          Flodén, Martin
          Wilander, Fredrik
      su:
        Mathematical models of pricing
        Foreign exchange
        Mathematical models
      sug:
        subj:
          Mathematical models of pricing
          Foreign exchange
          Mathematical models
      ab: We analyze exchange rate pass-through and volatility of import prices in a dynamic framework where firms are subject to menu costs and decide on price adjustments in response to exchange rate innovations. The exchange rate pass-through and import price volatility then depend on the invoicing currency in combination with functional forms of cost and demand functions. In particular, there is lower pass-through, less frequent price adjustments, and lower price volatility when prices are set in the importer's currency than when prices are set in the exporter's currency. Copyright (c) 2006 Elsevier B.V.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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