Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93670
Authors: 
Copeland, Adam
Kahn, James A.
Year of Publication: 
2012
Series/Report no.: 
Staff Report, Federal Reserve Bank of New York 584
Abstract: 
A large body of research has established that exporters do not fully adjust their prices across countries in response to exchange rate movements, but instead allow their markups to vary. But while markups are difficult to observe directly, we show in this paper that inventory-sales ratios provide an observable counterpart. We then find evidence that inventory-sales ratios of imported vehicles respond to exchange rate movements to a degree consistent with pass-through on the order of 50 to 75 percent, on the high end of the range found in the literature.
Subjects: 
exchange rate
pass-through
inventories
motor vehicles
JEL: 
F12
L11
L62
Document Type: 
Working Paper

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