Economics at your fingertips  

Estimating the Exchange Rate Pass-Through Effect on Producer Prices of Final Products Based on Micro-Data of Russian Companies

Andrey Sinyakov, D. Chernyadyev and A. Sapova
Additional contact information
D. Chernyadyev: Bank of Russia, Moscow, Russia
A. Sapova: Bank of Russia, Moscow, Russia

Journal of the New Economic Association, 2019, vol. 41, issue 1, 128-157

Abstract: In this paper we directly estimate exchange rate pass-through (ERPT) to producer prices in some industries of final goods. For this we use survey data on import content of firms' costs according to the survey conducted by the Bank of Russia in yearly 2017. Thus, we contribute to existing ERPT estimates for Russia based on aggregate industry- or economy-wide data. In addition, to account for possible strategic complementarities and variable markups in the estimate of ERPT, we use the survey data and other industry data to calibrate the model by (Amiti, Itskhoki, Konings, 2016). Our results show, first, that ERPT of final goods' producers is around 0,18. Second, according to the survey data, ERPT is asymmetric. It is twice as lower for rouble appreciations as for its depreciations. Third, strategic complementarities in the agriculture and the food producing industry cause ERPT relatively stronger deviate from its direct estimate based on import content in production costs comparing to other industries. The results have important implications for estimating inflation volatility of food products in the consumer basket and for financial well-being of companies in the industries with high strategic complementarity.

Keywords: exchange rate pass-through; inflation; strategic complementarities; markups; imports content of production cost; survey data (search for similar items in EconPapers)
JEL-codes: E31 F31 F41 D43 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of the New Economic Association is currently edited by Victor Polterovich and Aleksandr Rubinshtein

More articles in Journal of the New Economic Association from New Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Alexey Tcharykov ().

Page updated 2019-07-09
Handle: RePEc:nea:journl:y:2019:i:41:p:128-157