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Pricing to Market when the Exchange Rate Changes
Open accessAbstract
It has been widely remarked that US import prices have not fully reflected movements in the exchange rate.This paper begins with an investigation of the actual extent of "pricing to market" by foreign suppliers.It shows that pricing to market is a real phenomenon, but not universal; in particular, evidence on German export prices suggests that stickiness of import prices is largely confined to machinery and transport equipment.The paper then considers a number of possible models.While the evidence is not sufficient to distinguish among these models, it seems probable that a full explanation will involve both dynamics and imperfect competition.
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Citations
Cited by
A macroeconomic model of international price discrimination
Corsetti, G., & Dedola, L. (2005) · Journal of International Economics · doi:10.1016/j.jinteco.2004.09.009 · Cited by 344
Bilateral Trade in the Shadow of Armed Conflict
Long, A. G. (2008) · International Studies Quarterly · doi:10.1111/j.1468-2478.2007.00492.x · Cited by 124
International Shocks and Domestic Prices: How Large Are Strategic Complementarities?
Amiti, M., Itskhoki, O., & Konings, J. (2016) · doi:10.3386/w22119 · Cited by 65
Metadata
- Authors
- Krugman, P.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 1986-05
- OpenAlex
- W1599024647
- Cited by
- 984
- References
- 0
- Type
- report
- Language
- en
- Open access
- green
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Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.