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Title:Imports, pass-through, and the structure of retail markets PDF Logo
Authors:Raff, Horst
Schmitt, Nicolas
Issue Date:2009
Series/Report no.:CESifo working paper 2817
Abstract:We construct a model of trade with heterogeneous retailers to examine the effects of trade liberalization on retail market structure, imports and social welfare. We are especially interested in studying the degree of pass-through of import into retail prices and the effects of retail market regulation. The paper shows that the degree of pass-through may be large when market structure effects are taken into account, and that restrictions on retailing may have significant effects on imports and the degree of pass-through. The paper helps explain the apparent discrepancy between the low observed degree of pass-through and the large benefit that consumers seem to derive from trade liberalization.
Subjects:international trade
retailing
pass-through
firm heterogeneity
JEL:F12
L11
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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