EconStor >
Federal Reserve Bank of New York >
Staff Reports, Federal Reserve Bank of New York >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/60600
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorHellerstein, Rebeccaen_US
dc.date.accessioned2012-08-17T14:26:08Z-
dc.date.available2012-08-17T14:26:08Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/60600-
dc.description.abstractDespite its importance, the microeconomics of the international transmission of shocks is not well understood. The conventional wisdom is that relative price changes are the primary mechanism by which shocks are transmitted across borders. Yet traded-goods prices exhibit significant inertia in the face of shocks such as exchange rate changes. This paper uses a structural model to quantify the relative importance of manufacturers’ and retailers’ local-cost components and markup adjustments as sources of this incomplete transmission. The model is applied to a panel dataset of one industry with retail and wholesale prices for UPC (Universal Product Code)-level products. Markup adjustments by manufacturers and the retailer explain two-thirds of the incomplete transmission, and local-cost components account for the remaining one-third. Foreign manufacturers generally bear more of the cost (or reap more of the benefit) of an exchange-rate-induced marginal cost shock than do domestic consumers, domestic manufacturers, or the domestic retailer.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of New York New York, NYen_US
dc.relation.ispartofseriesStaff Report, Federal Reserve Bank of New York 250en_US
dc.subject.jelF14en_US
dc.subject.jelF3en_US
dc.subject.jelF4en_US
dc.subject.ddc330en_US
dc.subject.keywordcross-border transmission, exchange rates, pass-through, distribution marginsen_US
dc.subject.stwWechselkursen_US
dc.subject.stwSchocken_US
dc.subject.stwSpillover-Effekten_US
dc.subject.stwExchange Rate Pass-Throughen_US
dc.subject.stwEinzelhandelen_US
dc.subject.stwGroßhandelen_US
dc.subject.stwPreisen_US
dc.subject.stwBieren_US
dc.subject.stwUSAen_US
dc.titleA decomposition of the sources of incomplete cross-border transmissionen_US
dc.typeWorking Paperen_US
dc.identifier.ppn511442955en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Staff Reports, Federal Reserve Bank of New York

Files in This Item:
File Description SizeFormat
511442955.pdf540.41 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.