Quality, trade, and exchange rate pass-through /

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Bibliographic Details
Author / Creator:Chen, Natalie.
Imprint:[Washington, D.C.] : International Monetary Func, ©2014.
Description:1 online resource (58 pages)
Language:English
Series:IMF working paper ; WP/14/42
IMF working paper ; WP/14/42.
Subject:
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12503644
Hidden Bibliographic Details
Other authors / contributors:Juvenal, Luciana, author.
International Monetary Fund. Institute for Capacity Development.
ISBN:9781475526394
1475526393
9781475518320
1475518323
Notes:At head of title: IMF Institute for Capacity Development.
"March 2014."
Includes bibliographical references.
Online resource; title from digital title page (IMF.org web site, Apr. 25/2014).
Summary:This paper investigates theoretically and empirically the heterogeneous response of exporters to real exchange rate fluctuations due to product quality. Our model shows that the elasticity of demand perceived by exporters decreases with a real depreciation and with quality, leading to more pricing-to-market and to a smaller response of export volumes to a real depreciation for higher quality goods. We test the proposed theory using a highly disaggregated Argentinean firm-level wine export dataset between 2002 and 2009 combined with experts wine rankings as a measure of quality. The model predictions find strong support in the data and the results are robust to different measures of quality, samples, specifications, and to the potential endogeneity of quality.

MARC

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520 |a This paper investigates theoretically and empirically the heterogeneous response of exporters to real exchange rate fluctuations due to product quality. Our model shows that the elasticity of demand perceived by exporters decreases with a real depreciation and with quality, leading to more pricing-to-market and to a smaller response of export volumes to a real depreciation for higher quality goods. We test the proposed theory using a highly disaggregated Argentinean firm-level wine export dataset between 2002 and 2009 combined with experts wine rankings as a measure of quality. The model predictions find strong support in the data and the results are robust to different measures of quality, samples, specifications, and to the potential endogeneity of quality. 
588 0 |a Online resource; title from digital title page (IMF.org web site, Apr. 25/2014). 
505 0 |a Cover; Contents; I. Introduction; II. A Model of Pricing-to-Market and Quality; A. The Basic Framework; B. Cross-Country Heterogeneity in the Preference for Quality; III. Data and Descriptive Statistics; A. Firm-Level Exports Customs Data; B. Quality Ratings; C. Macroeconomic Data; IV. Wine and Model Assumptions; V. Empirical Framework; A. Baseline Results; B. Heterogeneity across Destination Countries; C. Aggregation Bias; VI. Robustness; A. The Measurement of Quality; B. The Endogeneity of Quality; C. Asymmetries; D. Sample Periods; E. Extensive Margin; F. The US Dollar. 
505 8 |a G. The Argentinean Consumer Price IndexH. Monthly Frequency; I. Currency of Invoicing; VII. Concluding Remarks; References; Tables; 1. Harmonized System (HS) Classification Codes; 2. Summary Statistics on Trade Data by Year; 3. Summary Statistics; 4. Top Export Destinations 2002-2009; 5. Experts Ratings; 6. Snapshot of the Data; 7. Price Breakdown for Non-EU Wine sold in Retail Outlets in the UK; 8. Baseline Results; 9. Local Distribution Costs; 10. Heterogeneity across Destination Countries; 11. Aggregation Bias; 12. Unit Values: Robustness on Quality. 
505 8 |a 13. Export Volumes: Robustness on Quality14. Robustness for Unit Values; 15. Robustness for Export Volumes. 
650 0 |a Exchange rate pass-through  |x Econometric models. 
650 0 |a Foreign exchange rates  |x Econometric models. 
650 0 |a Exports  |x Econometric models. 
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650 6 |a Taux de change  |x Modèles économétriques. 
650 6 |a Exportations  |x Modèles économétriques. 
650 6 |a Commerce international  |x Modèles économétriques. 
650 7 |a Exports  |x Econometric models.  |2 fast  |0 (OCoLC)fst00918770 
650 7 |a Foreign exchange rates  |x Econometric models.  |2 fast  |0 (OCoLC)fst00931818 
650 7 |a International trade  |x Econometric models.  |2 fast  |0 (OCoLC)fst00977133 
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