Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/60600 
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dc.contributor.authorHellerstein, Rebeccaen
dc.date.accessioned2012-08-17T14:26:08Z-
dc.date.available2012-08-17T14:26:08Z-
dc.date.issued2006-
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
dc.language.isoengen
dc.publisher|aFederal Reserve Bank of New York |cNew York, NYen
dc.relation.ispartofseries|aStaff Report |x250en
dc.subject.jelF14en
dc.subject.jelF3en
dc.subject.jelF4en
dc.subject.ddc330en
dc.subject.keywordcross-border transmission, exchange rates, pass-through, distribution marginsen
dc.subject.stwWechselkursen
dc.subject.stwSchocken
dc.subject.stwSpillover-Effekten
dc.subject.stwExchange Rate Pass-Throughen
dc.subject.stwEinzelhandelen
dc.subject.stwGroßhandelen
dc.subject.stwPreisen
dc.subject.stwBieren
dc.subject.stwUSAen
dc.titleA decomposition of the sources of incomplete cross-border transmission-
dc.typeWorking Paperen
dc.identifier.ppn511442955en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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