Goods Prices and Exchange Rates: What Have We Learned? / Pinelopi K. Goldberg, Michael M. Knetter.

Format:

Book

Author/Creator:

Goldberg, Pinelopi K.

Contributor:

National Bureau of Economic Research.

Knetter, Michael M.

Series:

Working Paper Series (National Bureau of Economic Research) no. w5862.

NBER working paper series no. w5862

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Goods Prices and Exchange Rates

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1996.

Summary:

Import prices typically change by a smaller proportion than the exchange rate between the exporting and importing country. Recent research indicates that common-currency relative prices for similar goods exported to different markets are highly correlated with exchange rates between those markets. This evidence suggests that incomplete pass-through is a consequence of third-degree price discrimination. While distance matters for market segmentation, borders have independent effects. The source of the border effect has not been clearly identified. Furthermore, there is little evidence yet to suggest substantial market power is implied by the observed price discrimination.

Notes:

Print version record

December 1996.