IDEAS home Printed from https://ideas.repec.org/a/rpo/ripoec/v93y2003i6p131-166.html
   My bibliography  Save this article

Local Currency Pricing and Pass-Through: An Empirical and Theoretical Analysis

Author

Listed:
  • Aurora Ascione

    () (Università degli Studi di "Roma Tre")

Abstract

This paper explores the reasons behind a low elasticity of imported goods to the nominal exchange rates, analyzing empirically the law of one price and the degree of pass-through. The results show that, in the medium and long term, the degree of pass-through is low and the deviations from the law of one price on consumer prices are wide and persistent. These deviations are due to both local currency pricing strategies and the behavior of prices in the distribution services. Given these results, we propose a new decomposition of the consumer price index that takes into account multiple factors for the analysis of the degrees of pass-through.

Suggested Citation

  • Aurora Ascione, 2003. "Local Currency Pricing and Pass-Through: An Empirical and Theoretical Analysis," Rivista di Politica Economica, SIPI Spa, vol. 93(6), pages 131-166, November-.
  • Handle: RePEc:rpo:ripoec:v:93:y:2003:i:6:p:131-166
    as

    Download full text from publisher

    File URL: http://www.rivistapoliticaeconomica.it/premio_angcosta/07_Ascione_131_166.pdf
    Download Restriction: no

    More about this item

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

    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:rpo:ripoec:v:93:y:2003:i:6:p:131-166. 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: (Sabrina Marino). General contact details of provider: .

    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.