Exchange Rate Pass-Through and Dynamic Oligopoly [electronic resource] : An Empirical Investigation / Dominique M Gross.
Material type:
TextSeries: IMF Working Papers; Working Paper ; No. 99/47Publication details: Washington, D.C. : International Monetary Fund, 1999Description: 1 online resource (33 p.)ISBN: 1451846622 :ISSN: 1018-5941Subject(s): Cointegration | Equations | Exchange Rate Pass | Exchange Rate Pass-Through | Exchange Rate | Exchange Rates | Belgium | GermanyAdditional physical formats: Print Version:: Exchange Rate Pass-Through and Dynamic Oligopoly : An Empirical InvestigationOnline resources: IMF e-Library | IMF Book Store Abstract: 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.
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.
Description based on print version record.
There are no comments on this title.