Who's Most Exposed to International Shocks? Estimating Differences in Import Price Sensitivity across U.S. Demographic Groups

Colin Hottman and Ryan Monarch

No 1380, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Differences in consumption patterns across demographic groups mean that international price shocks differentially affect such groups. We construct import price indexes for U.S. consumer groups that vary by age, race, sex, education, and urban status. Black consumers and college graduates experienced significantly higher import price inflation from 1996-2018 compared to other groups, such as high school dropouts, rural consumers, and consumers over 60. Sensitivity to international price shocks varies widely, implying movements in exchange rates and foreign prices, both during our sample and during the Covid-19 pandemic, drove sizable differences in import price inflation – and total inflation – across groups.

Keywords: Import price inflation; Exchange-rate passthrough; Inequality (search for similar items in EconPapers)
JEL-codes: D12 E31 F31 (search for similar items in EconPapers)
Date: 2023-09-27
New Economics Papers: this item is included in nep-opm
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Working Paper: Who’s Most Exposed to International Shocks? Estimating Differences in Import Price Sensitivity across U.S. Demographic Groups (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgif:1380

DOI: 10.17016/IFDP.2023.1380

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