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Goods Prices and Exchange Rates: What Have We Learned?
Open accessAbstract
Import prices typically change by a smaller proportion than the exchange rate between the exporting and importing country. Recent research indicates that common-currency relative prices for similar goods exported to different markets are highly correlated with exchange rates between those markets. This evidence suggests that incomplete pass-through is a consequence of third-degree price discrimination. While distance matters for market segmentation, borders have independent effects. The source of the border effect has not been clearly identified. Furthermore, there is little evidence yet to suggest substantial market power is implied by the observed price discrimination.
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Cited by
Fajgelbaum, P. D., Goldberg, P. K., Kennedy, P. J., & Khandelwal, A. K. (2020) · The Quarterly Journal of Economics · doi:10.1093/qje/qjz036 · Cited by 1,030
Self-citationExchange rate anomalies in the industrial countries: A solution with a structural VAR approach
Kim, S., & Roubini, N. (2000) · Journal of Monetary Economics · doi:10.1016/s0304-3932(00)00010-6 · Cited by 915
The Impact of the 2018 Tariffs on Prices and Welfare
Amiti, M., Redding, S. J., & Weinstein, D. E. (2019) · Journal of Economic Perspectives · doi:10.1257/jep.33.4.187 · Cited by 878
Pass-Through of Emissions Costs in Electricity Markets
Fabra, N., & Reguant, M. (2014) · American Economic Review · doi:10.1257/aer.104.9.2872 · Cited by 491
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
Metadata
- Authors
- Goldberg, P., & Knetter, M.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 1996-12
- OpenAlex
- W1561131190
- Cited by
- 1,472
- References
- 0
- Type
- report
- Language
- en
- Open access
- green
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- Goldberg, P., & Knetter, M. (1996). Goods Prices and Exchange Rates: What Have We Learned? National Bureau of Economic Research. https://doi.org/10.3386/w5862
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