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Goods Prices and Exchange Rates: What Have We Learned?

Open access
Goldberg, Pinelopi, Knetter, Michael·1996·National Bureau of Economic Research

Abstract

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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Metadata

Authors
Goldberg, P., & Knetter, M.
Venue
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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CoChat. (2026). Citation check: Goods Prices and Exchange Rates: What Have We Learned? https://app.cochat.ai/papers/10.3386/w5862
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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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