Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77658
Authors: 
Flach, Lisandra
Janeba, Eckhard
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4298
Abstract: 
This paper provides first firm-level evidence of the links between income inequality and the patterns of trade and export prices. We identify a theoretical mechanism behind these links, which suggests that a more unequal income distribution leads to higher average prices. We test the theory using detailed data for Brazilian exporters and find that the destination countries' first and second moment of the income distribution are important determinants of export prices. Controlling for income per capita, prices are systematically higher in more unequal countries, with this effect being particularly relevant for middle-income countries and holding only for differentiated goods.
Subjects: 
export prices
income distribution
product quality
markups
JEL: 
F12
F14
L11
Document Type: 
Working Paper

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