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- W1946990122 abstract "Due to downward price rigidities, market share objectives, binding quantity constraintsand menu costs the responses of import prices to exchange rate changes can beasymmetric and non-linear. In this paper, regression equation augmented with interactivedummy variables is used on quarterly data from 1980 to 2014 for six different countries,Germany, Iceland, New Zealand, Sweden, the U.K. and the U.S., in an attempt to testwhether the direction and the size of the exchange rate change matters for pass-throughto import prices. The results indicate that asymmetry cannot be neglected. For the U.S.and Sweden, evidence of asymmetric behavior is found but the direction of asymmetryvaries between the two countries. For no country can the restriction of linear passthroughbe rejected, unless when also taking into account the direction of the change,suggesting that the direction effects overshadow the size effects" @default.
- W1946990122 created "2016-06-24" @default.
- W1946990122 creator A5042550297 @default.
- W1946990122 date "2015-09-30" @default.
- W1946990122 modified "2023-09-27" @default.
- W1946990122 title "Asymmetric and Non-linear Exchange Rate Pass-Through" @default.
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