IDEAS home Printed from https://ideas.repec.org/p/red/sed015/1519.html
   My bibliography  Save this paper

Exchange Rate Pass-Through and Market Structure in Multi-Country World

Author

Listed:
  • Kanda Naknoi

    (University of Connecticut)

Abstract

Micro-estimates of exchange rate pass-through yield elasticities well outside the range of values predicted by the existing theory. I provide a multi-country quadratic utility model to examine how export prices are affected by movements in own-currency and cross-currency exchange rates, and estimate the own-currency and cross-currency exchange rate pass-through elasticity of export prices from Canada to the U.S. In the model, own-currency appreciations move firms along the demand curve while cross-currency appreciations shift the position of the demand curve. Both affect the firm's elasticity of demand and therefore the degree to which exchange rate movements affect prices. When own-currency and cross-currency exchange rates are correlated, the model predicts exchange rate pass-through elasticities that match facts. In the empirical part, I show that cross-currency exchange rate pass-through exists in about one-third of the sample products.

Suggested Citation

  • Kanda Naknoi, 2015. "Exchange Rate Pass-Through and Market Structure in Multi-Country World," 2015 Meeting Papers 1519, Society for Economic Dynamics.
    • Handle: RePEc:red:sed015:1519
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Auer, Raphael A. & Schoenle, Raphael S., 2016. "Market structure and exchange rate pass-through," Journal of International Economics, Elsevier, vol. 98(C), pages 60-77.
    2. Berger, David & Faust, Jon & Rogers, John H. & Steverson, Kai, 2012. "Border prices and retail prices," Journal of International Economics, Elsevier, vol. 88(1), pages 62-73.

    More about this item

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:red:sed015:1519. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Zimmermann (email available below). General contact details of provider: https://edirc.repec.org/data/sedddea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.