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| Author: | Bodnar, G.M. Dumas, B. Marston, R.C. |
| Title: | Pass-through and exposure |
| Journal: | Journal of Finance
2002 : FEB, VOL. 57:1, p. 199-231 |
| Index terms: | CURRENCY EXCHANGE RATES EXPORTING IMPERFECT COMPETITION |
| Language: | eng |
| Abstract: | Firms differ in the extent to which they "pass through" changes in exchange rates into foreign currency prices and in their "exposure" to exchange rates - the responsiveness of their profits to change in exchange rates. Because pricing affects profitability, a firm's pass-through and exposure should be related. This paper develops models of exporting firms under imperfect competition to study these related phenomena. |
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