Understanding Markups in the Open Economy

• 成果类型: Article
• 署名作者: de Blas, Beatriz; Russ, Katheryn N.
• 署名单位: Autonomous University of Madrid; University of California System; University of California Davis; National Bureau of Economic Research
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20120155
• 发表日期: 2015
• 页码: 157-180
• 关键词: pricing-to-market; pass-through; exchange-rates; TRADE; COMPETITION; PRODUCTIVITY; MODEL; TECHNOLOGY; search; POWER

摘要

This paper presents a new model of Bertrand competition between heterogeneous firms in the open economy where the macroeconomic distribution of markups responds to the degree of trade openness and the underlying level of technology in each trading partner. The model's simple closed-form distributions for markups and pricing yield predictions that coincide with a number of stylized facts from the empirical literature on markups, pass-through, and trade openness which previously could be illustrated only through numerical simulations.