Endogenous product adjustment and exchange rate pass-through
نویسندگان
چکیده
We document how product quality responds to exchange rate movements and quantify the extent which these changes affect aggregate pass-through into export prices. analyze substantial sudden appreciation of Swiss franc post removal 1.20-CHF-per-euro lower bound in 2015 using data representing a large share universe goods exports from Switzerland. find that firms upgrade their products after appreciation. Furthermore, they disproportionately remove lower-quality ranges. This upgrading sorting effect accounts for total one year cross-check our results with microdata underlying price index, includes an adjustment factor based on firms' reported replacements, obtain similar results.
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ژورنال
عنوان ژورنال: Journal of International Economics
سال: 2023
ISSN: ['0022-1996', '1873-0353']
DOI: https://doi.org/10.1016/j.jinteco.2022.103706