Quality, trade, and exchange rate pass-through

• 成果类型: Article
• 署名作者: Chen, Natalie; Juvenal, Luciana
• 署名单位: University of Warwick; Leibniz Association; Ifo Institut; Centre for Economic Policy Research - UK; International Monetary Fund
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2016.02.003
• 发表日期: 2016
• 页码: 61-80
• 关键词: Distribution costs; exchange rate pass-through; Heterogeneity; Pricing-to-market; QUALITY; wine

摘要

We investigate theoretically and empirically the effects of real exchange rate changes on the behavior of firms exporting multiple products with heterogeneous levels of quality. Our model, which features a demand elasticity that falls with quality, predicts more pricing-to-market and a smaller response of export volumes to a real depreciation for higher quality goods. We provide strong support for the model predictions using a unique data set of Argentinean firm-level wine export values and volumes between 2002 and 2009 combined with experts wine ratings to measure quality. The heterogeneity we find in the response of export prices and volumes to changes in exchange rates remains robust to alternative measures of quality, samples, and specifications. (c) 2016 Elsevier B.V. All rights reserved.