Pass-Through of Exchange Rates and Competition between Floaters and Fixers

被引:43
作者
Bergin, Paul R. [1 ]
Feenstra, Robert C. [1 ]
机构
[1] Univ Calif Davis, Dept Econ, Davis, CA 95616 USA
关键词
F40; pass-through; exchange rates; translog; China; PRICES;
D O I
10.1111/j.1538-4616.2008.00198.x
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
This paper studies how a rise in the share of U.S. imports from China, or any country with a fixed exchange rate, can explain a disproportionate fall in exchange rate pass-through to U.S. import prices. A theoretical model provides an explanation working through changes in markups, showing that a particular "local bias" condition is necessary and that free entry amplifies the effect. The model produces a structural equation for pass-through regressions including the China share; panel regressions over 1993-2006 indicate that the rising share of trade from China or other exchange rate fixers can explain as much as one-half of the observed decline in pass-through for the United States.
引用
收藏
页码:35 / 70
页数:36
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