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Gross, Dominique M.

Exchange Rate Pass-Through and Dynamic Oligopoly An Empirical Investigation / Dominique M Gross. [electronic resource] : Dominique M Gross. - Washington, D.C. : International Monetary Fund, 1999. - 1 online resource (33 p.) - IMF Working Papers; Working Paper ; No. 99/47 . - IMF Working Papers; Working Paper ; No. 99/47 .

This paper explicitly takes into account the dynamic oligopolistic rivalry among source producers to evaluate the degree of exchange rate pass-through. Using recent time-series techniques for the case of imported automobiles in Switzerland, the results show that prices are strategic complements and that the degree of pass-through is lower in the long run than in the short run. We attribute this to the fact that, although some rivals match long-term price changes, others do not, inducing the producer who faces a change in exchange rate to absorb a greater proportion of the variation.

ISBN: 1451846622 : 15.00 USD

ISSN: 1018-5941

Standard No.: 10.5089/9781451846621.001 doi

Subjects--Topical Terms:
Cointegration
Equations
Exchange Rate Pass
Exchange Rate Pass-Through
Exchange Rate
Exchange Rates

Subjects--Geographic Terms:
Belgium
Germany