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Pricing to market of German exporters: evidence from panel data

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  • Falk, Rahel
  • Falk, Martin

Abstract

This paper investigates price discrimination of German exporters across different foreign markets. We examine the degree of pass-through of exchange rate fluctuations in the pricing of 70 export items. The model is estimated using panel data on export unit values. Parameter estimation relies on GMM first difference, fixed effects, LAD, OLS first difference, and the random coefficients model. The main results for 70 manufactured goods and 15 destination countries between 1990-1994 are : The degree of pricing to market differs among destinations and products. Highest pricing to market is observed for U.S., Japan, Italy and Spain. Pricing to market is more prevalent in exports of chemicals and fertilisers than in machinery products.

Suggested Citation

  • Falk, Rahel & Falk, Martin, 1998. "Pricing to market of German exporters: evidence from panel data," ZEW Discussion Papers 98-28, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5203
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    References listed on IDEAS

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    More about this item

    Keywords

    Pricing to market; law of one price; panel data;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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