Cost pass-through in the US automobile market

• 成果类型: Article
• 署名作者: Gron, A; Swenson, DL
• 署名单位: Northwestern University; University of California System; University of California Davis; National Bureau of Economic Research
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/003465300558704
• 发表日期: 2000-05
• 页码: 316-324
• 关键词: exchange-rates; product differentiation; imperfect competition; price-discrimination; UNITED-STATES; share

摘要

We study cost pass-through in the U.S. automobile market using a framework that incorporates the effects of cost changes on input decisions. We find that accounting for firms' factor-market decisions significantly increases measured cost pass-through, although we reject the hypothesis of full cost pass-through and constant markups. In addition, our evidence suggests that cost shocks common to all manufacturers have a greater effect on prices than do model-specific cost shocks. Finally, we examine how pass-through varies with manufacturer nationality, finding that U.S. firm cost pass-through exceeds that of European and Asian firms.