Markup Adjustment and Exchange Rate Fluctuations: Evidence From Panel Data on Automobile Exports

Joseph Gagnon and Michael M. Knetter

No 4123, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper uses bilateral automobile export unit values from the United States, Germany and Japan to measure the importance of markup adjustment that is associated with exchange rate changes across export destination markets. Japanese auto export prices exhibit a high degree of markup adjustment that has the effect of stabilizing prices in units of the buyer's currency. There is weak evidence of this behavior in German auto exports and none for U.S. auto exports. Where it exists, markup adjustment is very persistent, not merely a short run phenomenon. The dynamic pattern of adjustment is consistent with invoicing in the exporter's currency, except for exports to the United States and Canada.

Date: 1992-07
Note: IFM ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published as Journal of International Money and Finance, April 1995, pp. 289-310

Downloads: (external link)
http://www.nber.org/papers/w4123.pdf (application/pdf)

Related works:
Journal Article: Markup adjustment and exchange rate fluctuations: evidence from panel data on automobile exports (1995)
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: https://EconPapers.repec.org/RePEc:nbr:nberwo:4123

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w4123

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().