Multi-Product Firms and Exchange Rate Fluctuations

• 成果类型: Article
• 署名作者: Chatterjee, Arpita; Dix-Carneiro, Rafael; Vichyanond, Jade
• 署名单位: University of New South Wales Sydney; University System of Maryland; University of Maryland College Park; International Monetary Fund
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.5.2.77
• 发表日期: 2013
• 页码: 77-110
• 关键词: rate pass-through; Pricing-to-market; TRADE; PRODUCTIVITY; DYNAMICS; COSTS; MODEL

摘要

This paper studies the effect of exchange rate shocks on export behavior of multi-product firms. We provide a theoretical framework illustrating how firms adjust their prices, quantities, product scope, and sales distribution across products in the event of exchange rate fluctuations. In response to a real exchange rate depreciation, firms increase markups for all products, but markup increases decline with firm-product-specific marginal costs of production. We find robust evidence for our theoretical predictions using Brazilian customs data containing destination-specific and product-specific export sales and quantities. The sample period covers the years 1997-2006, during which Brazil experienced a series of drastic currency fluctuations.