Autori: Kirman, Alan, Phlips, Louis
Titolo: Exchange rate pass-through and market structure
Periodico: European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1992 - Fascicolo: 83 - Pagina iniziale: 1 - Pagina finale: 19

n firms located in market 1 and m firms located in market 2 each sell a homogeneous commodity in both markets. Each market has its own currency. The market demand functions differ. When these markets are independent on the cost side (constant marginal costs) and demands are linear, a merger in market 1 increases the pass-through (of an appreciation of currency 2) in market 1 and decreases the pass-through in market 2. A merger in market 2 has the opposite effect. With identical economies of scope linking the markets, the sign of the price changes may be reversed when the number of foreign firms is small enough compared to the number of local firms. However, the sign reversals cannot occur in the two markets simultaneously.




Testo completo: http://hdl.handle.net/1814/434

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