Abstract
| Original language | English |
|---|---|
| Place of Publication | Frederiksberg |
| Publisher | Centre for Economic and Business Research, Copenhagen Business School |
| Number of pages | 24 |
| Publication status | Published - 2012 |
Keywords
- Pricing-to-market
- Heterogeneous Exporter
- Monthly Firm Level Trade Data
Cite this
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Exporter Price Response to Exchange Rate Changes. / Fosse, Henrik Barslund.
Frederiksberg : Centre for Economic and Business Research, Copenhagen Business School, 2012.Research output: Working paper › Research
TY - UNPB
T1 - Exporter Price Response to Exchange Rate Changes
AU - Fosse, Henrik Barslund
PY - 2012
Y1 - 2012
N2 - Firms exporting to foreign markets face a particular challenge: to price their exports in a foreign market when the exchange rate changes. This paper takes on pricing- to-market using a unique data set that covers rm level monthly trade at great detail. As opposed to annual trade ows, monthly trade ows bring us closer to the transaction level where rm decisions are actually made. I nd that the utilization of monthly data does add new information about the average level of pricing-to-market, and the di¤erences between long-run pricing-to-market and short-run pricing-to-market. Furthermore, I nd industry di¤erences in pricing-to-market in terms of the magnitude (zero to complete pricing-to-market) and the timing (when do rms changes prices), and that pricing-to-market is stronger on high-income markets. As discussed in detail in the paper, all results are in-line with predictions of several theoretical contributions to the litterature on pricing-to-market and exchange rate pass-through.
AB - Firms exporting to foreign markets face a particular challenge: to price their exports in a foreign market when the exchange rate changes. This paper takes on pricing- to-market using a unique data set that covers rm level monthly trade at great detail. As opposed to annual trade ows, monthly trade ows bring us closer to the transaction level where rm decisions are actually made. I nd that the utilization of monthly data does add new information about the average level of pricing-to-market, and the di¤erences between long-run pricing-to-market and short-run pricing-to-market. Furthermore, I nd industry di¤erences in pricing-to-market in terms of the magnitude (zero to complete pricing-to-market) and the timing (when do rms changes prices), and that pricing-to-market is stronger on high-income markets. As discussed in detail in the paper, all results are in-line with predictions of several theoretical contributions to the litterature on pricing-to-market and exchange rate pass-through.
KW - Pricing-to-market
KW - Heterogeneous Exporter
KW - Monthly Firm Level Trade Data
KW - Pricing-to-market
KW - Heterogeneous Exporters
KW - Monthly Firm Level Trade Data
M3 - Working paper
BT - Exporter Price Response to Exchange Rate Changes
PB - Centre for Economic and Business Research, Copenhagen Business School
CY - Frederiksberg
ER -