 Pricing-to-Market in Swedish ExportsAnnika Alexius () and Anders Vredin () No 146, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics Abstract: In this paper fluctuations in prices of Swedish exports to five countries are investigated in order to test whether there are systematic differences between prices to different markets and whether relative export prices are systematically affected by macroeconomic conditions in destination countries. Simple correlations suggest that relative export prices are related to real exchange rates, but also to nominal exchange rates. Formal tests, based on an error-correction model, indicate that the deviations from no pricing-to-market and neutrality of money are quite common and persistent. Over a sample of 15 years, long run monetary neutrality is rejected in almost half of the cases. In most cases, the degree of pricing-to-market is also affected by aggregate demand (unemployment) in export markets. Keywords: export prices; exchange rates; pricing-to-market; neutrality of money; exchange-rate pass-through (search for similar items in EconPapers) Forthcoming in Scandinavian Journal of Economics. There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0146 Access Statistics for this paper More papers in SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden. Contact information at EDIRC. |
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