Demand for Value Added and Value-Added Exchange Rates

• 成果类型: Article
• 署名作者: Bems, Rudolfs; Johnson, Robert C.
• 署名单位: University of Tokyo; Dartmouth College; National Bureau of Economic Research
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20150216
• 发表日期: 2017
• 页码: 45-90
• 关键词: business-cycle comovement; international transmission; vertical specialization; intermediate inputs; global recession; world-trade; MODEL; macroeconomics; collapse; welfare

摘要

We examine how cross-border input linkages shape the response of demand for value added to international relative price changes. We define a novel value-added real effective exchange rate (REER), which aggregates bilateral value-added price changes. Spillovers via input linkages lower the sensitivity of the value-added REER to price changes by supply chain partners because they counterbalance demand-side expenditure switching. Input linkages also raise the price elasticity of demand relative to the conventional REER framework, making demand more sensitive to REER changes. Using global input-output data, we demonstrate that these conceptual insights are quantitatively important in a case study of European competitiveness.