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Investment Prices and Exchange Rates: Some Basic Facts / Ariel Burstein, Joao C. Neves, Sergio Rebelo.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Burstein, Ariel.
Contributor:
National Bureau of Economic Research.
Neves, Joao C.
Rebelo, Sergio.
Series:
Working Paper Series (National Bureau of Economic Research) no. w10238.
NBER working paper series no. w10238
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Investment Prices and Exchange Rates
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2004.
Summary:
This paper documents four basic facts about investment goods and investment prices. First, investment has a very significant nontradable component in the form of construction services. Second, distributions services (wholesaling, retailing, and transportation) are much less important for investment than for consumption. Third, the import content of investment is much larger than that of consumption. Finally, in the aftermath of three large devaluations, the rate of exchange rate pass-through is, perhaps not surprisingly, highest for imported equipment and lowest for construction services.
Notes:
Print version record
January 2004.

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