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dc.contributor.authorGagnon, Etienneen_US
dc.contributor.authorMandel, Benjamin R.en_US
dc.contributor.authorVigfusson, Robert J.en_US
dc.date.accessioned2012-01-16en_US
dc.date.accessioned2012-08-17T14:38:29Z-
dc.date.available2012-08-17T14:38:29Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/60954-
dc.description.abstractA large body of empirical work has found that exchange rate movements have only modest effects on inflation. However, the response of an import price index to exchange rate movements may be underestimated because some import price changes are missed when constructing the index. We investigate downward biases that arise when items experiencing a price change are especially likely to exit or to enter the index. We show that, in theoretical pricing models, entry and exit have different implications for the timing and size of these biases. Using Bureau of Labor Statistics microdata, we derive empirical bounds on the magnitude of these biases and construct alternative price indexes that are less subject to selection effects. Our analysis suggests that the biases induced by selective exits and entries do not materially alter the literature's view that pass-through to U.S. import prices is low over the short- to medium-term horizons that are most useful for both forecasting and differentiating among economic models.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 537en_US
dc.subject.jelF31en_US
dc.subject.jelF41en_US
dc.subject.jelE30en_US
dc.subject.jelE01en_US
dc.subject.jelC81en_US
dc.subject.ddc330en_US
dc.subject.keywordexchange rate pass-throughen_US
dc.subject.keywordprice indexen_US
dc.subject.stwExchange Rate Pass-Throughen_US
dc.subject.stwAußenhandelspreisen_US
dc.subject.stwInflationen_US
dc.subject.stwAußenhandelspreisindexen_US
dc.subject.stwLebenshaltungsindexen_US
dc.subject.stwUSAen_US
dc.titleThe hitchhiker's guide to missing import price changes and pass-throughen_US
dc.typeWorking Paperen_US
dc.identifier.ppn683162675en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Staff Reports, Federal Reserve Bank of New York

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