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Export price adjustments under financial constraints

Angelo Secchi (), Federico Tamagni () and Chiara Tomasi ()

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Exploiting data on product-destination level transactions of a large panel of Italian firms, we provide new evidence on the effect of financial constraints on price variation across exporters. Controlling for firm characteristics and endogeneity, constrained exporters charge higher prices than unconstrained firms exporting in the same product-destination market. The positive price difference increases with horizontal differentiation of products, while it reduces in vertically differentiated products, where there is more scope for quality adjustments. The results are consistent with constrained firms exploiting demand rigidities to keep prices up in the attempt to sustain revenues and escape the constraints.

Keywords: horizontal and vertical differentiation; quality adjustment; financial constraints; export prices; contraintes financières; prix à l'exportation; différenciation horizontale et verticale; ajustement de qualité (search for similar items in EconPapers)
Date: 2013-07
New Economics Papers: this item is included in nep-com, nep-int and nep-opm
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00848159v2
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Published in 2013

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Related works:
Journal Article: Export price adjustments under financial constraints (2016) Downloads
Journal Article: Export price adjustments under financial constraints (2016) Downloads
Working Paper: Export price adjustments under financial constraints (2016)
Working Paper: Export price adjustments under financial constraints (2016)
Working Paper: Export price adjustments under financial constraints (2016)
Working Paper: Export price adjustments under financial constraints (2014) Downloads
Working Paper: Export price adjustments under financial constraints (2013) Downloads
Working Paper: Export price adjustments under financial constraints (2013)
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