Pricing-to-Market, Trade Costs, and International Relative Prices

• 成果类型: Article
• 署名作者: Atkeson, Andrew; Burstein, Ariel
• 署名单位: University of California System; University of California Los Angeles
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.98.5.1998
• 发表日期: 2008
• 页码: 1998-2031
• 关键词: general equilibrium-analysis; exchange-rate dynamics; rate pass-through; Ricardian model; rates; TECHNOLOGY; deviations

摘要

International relative prices across industrialized countries show large and systematic deviations from relative purchasing power parity. We embed a model of imperfect competition and variable markups in a quantitative model of international trade. We find that when our model is parameterized to match salient features of the data on international trade and market structure in the United States, it can reproduce deviations from relative purchasing power parity similar to those observed in the data because firms choose to price-to-market. We then examine how pricing-to-market depends on the presence of international trade costs and various features of market structure.