Autori
Baniak, A.
Phlips, Louis

Titolo
La Pléiade and exchange rate pass-through
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1994 - Fascicolo: 20 - Pagina iniziale: 1 - Pagina finale: 38

We examine the effects of a change in the exchange rate on sales and prices in the framework of a two-country, two-commodity duopoly model with joint production. We distinguish two kinds of reaction. W hen the firm located in the country whose currency depreciates (appreciates) increases (decreases) sales in both countries, we call it the “firm specific” effect. If all sales in the country which appreciates (depreciates) its currency increase (decrease), we call it the “country specific” effect. Strategic substitutability, economies of joint production an d/or economies of scale lead to the firm specific effect. Strategic complementarity, diseconomies of joint production and/or diseconomies of scale lead to the country specific effect.



Testo completo: http://hdl.handle.net/1814/500

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