The effect of firm-level productivity on exchange rate pass-through

Jonathan Aaron Cook

Economics Letters, 2014, vol. 122, issue 1, 27-30

Abstract: A heterogeneous-firm trade model can explain the recent decrease in exchange rate pass-through to aggregate US import prices as a result of decreased trade costs. This paper finds support for this explanation by testing another implication of this type of heterogeneous firm model: lower exchange rate pass-through for goods that are traded for short periods of time.

Keywords: Exchange rate pass-through; Heterogeneous firms; Endogenous markups (search for similar items in EconPapers)
JEL-codes: F12 F31 F41 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:122:y:2014:i:1:p:27-30

DOI: 10.1016/j.econlet.2013.10.028

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