Pricing-to-market in a Ricardian model of international trade:

We study the implications for international relative prices of a simple Ricardian model of international trade with imperfect competition and variable markups, providing a tractable account of firm-level and aggregate prices. We show that both trade costs and imperfect competition with variable mark...

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Bibliographische Detailangaben
Beteiligte Personen: Atkeson, Andrew 1961- (VerfasserIn), Burstein, Ariel T. 1974- (VerfasserIn)
Format: Buch
Sprache:Englisch
Veröffentlicht: Cambridge, Mass. National Bureau of Economic Research 2007
Schriftenreihe:Working paper series / National Bureau of Economic Research 12861
Links:http://papers.nber.org/papers/w12861.pdf
Zusammenfassung:We study the implications for international relative prices of a simple Ricardian model of international trade with imperfect competition and variable markups, providing a tractable account of firm-level and aggregate prices. We show that both trade costs and imperfect competition with variable markups are needed to account for pricing-to-market at the firm and aggregate levels. We also show that international trade costs are essential, but pricing-to-market is not, to account for a high volatility of tradeable consumer prices relative to the overall CPI-based real-exchange rate.
Umfang:14 S. graph. Darst. 22 cm