Exchange Rate Pass-Through and Dynamic Oligopoly

Exchange Rate Pass-Through and Dynamic Oligopoly

4.11 - 1251 ratings - Source

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.hardly changes with increased significance supporting the role of German costs in Belgian F rancs. ... In their study of the U.S. automobile market, they find that Mazda 323 and Nissan Sentra are close substitutes for Ford Escort and Chevyanbsp;...

Title:Exchange Rate Pass-Through and Dynamic Oligopoly
Author: Dominique M. Gross, Mr. Nicolas Schmitt
Publisher:International Monetary Fund - 1999-04-01

You must register with us as either a Registered User before you can Download this Book. You'll be greeted by a simple sign-up page.

Once you have finished the sign-up process, you will be redirected to your download Book page.

How it works:
  • 1. Register a free 1 month Trial Account.
  • 2. Download as many books as you like (Personal use)
  • 3. Cancel the membership at any time if not satisfied.

Click button below to register and download Ebook
Privacy Policy | Contact | DMCA