search query: @indexterm IMPORTS / total: 377
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Author: | Engel, C. |
Title: | Equivalence results for optimal pass-through, optimal indexing to exchange rates and optimal choice of currency for export pricing |
Journal: | Journal of the European Economic Association
2006 : DEC, VOL. 4:6, p. 1249-1260 |
Index terms: | international trade exports imports exchange rates currency pricing models |
Language: | eng |
Abstract: | The paper draws a simple link btw. the choice of currency and a firm's pricing decision changing prices in response to all shocks. Especially, if the latter firm's price has a lower variance as to its own currency than the importer's currency, then the firm with a price list (here as: pr-l.) will set the price in its own currency. This relationship is established by consideration of the firm with a pr-l. as a special case of a firm that indexes its export price to the exchange rate. |
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