IDEAS home Printed from https://ideas.repec.org/a/aea/apandp/v109y2019p527-32.html
   My bibliography  Save this article

Dollar Invoicing and the Heterogeneity of Exchange Rate Pass-Through

Author

Listed:
  • Emine Boz
  • Gita Gopinath
  • Mikkel Plagborg-Møller

Abstract

We show empirically that the variation across country pairs in exchange rate pass-through and trade elasticity is meaningfully explained by the dollar's dominance as invoicing currency. We use a hierarchical Bayesian approach to directly and flexibly model pass-through heterogeneity conditional on the invoicing currency share. We estimate that the importer's country-level dollar invoicing share explains 15 percent of the overall variance across trading pairs in dollar exchange rate pass-through into bilateral prices.

Suggested Citation

  • Emine Boz & Gita Gopinath & Mikkel Plagborg-Møller, 2019. "Dollar Invoicing and the Heterogeneity of Exchange Rate Pass-Through," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 527-532, May.
  • Handle: RePEc:aea:apandp:v:109:y:2019:p:527-32
    Note: DOI: 10.1257/pandp.20191009
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20191009
    Download Restriction: no

    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20191009.appx
    Download Restriction: no

    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20191009.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yining Geng, 2020. "Impact of Family Planning Policy on Gender Inequality: Evidence from China," Working Papers 202008, University of Liverpool, Department of Economics.
    2. Yining Geng, 2020. "Impact of Family Planning Policy on Gender Inequality: Evidence from China," Working Papers 202009, University of Liverpool, Department of Economics.
    3. Giancarlo Corsetti & Meredith Crowley & Lu Han, 2020. "Invoicing and Pricing-to-market: Evidence on international pricing by UK exporters," Working Papers 202007, University of Liverpool, Department of Economics.

    More about this item

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:apandp:v:109:y:2019:p:527-32. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael P. Albert). General contact details of provider: http://edirc.repec.org/data/aeaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.