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Exchange Rates and Import Prices in Switzerland

  • Nils Herger
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    For the case of Switzerland, this paper endeavours to estimate the empirical extend with which exchange rates are "passed-through" onto import prices. For data covering the 1999 to 2010 period, the results suggest that (i) on aggregate, the exchange rate pass-through is highly incomplete with an elasticity of around 0.2 and (ii) major differences arise between industries. In particular, relatively large pass-through effects can be observed for commodities and other standardised products such as paper, timber, or minerals whilst for automobiles and textiles, the impact of the exchange rate upon import prices is negligible and statistically far from significant.

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    File URL: http://www.sjes.ch/papers/2012-III-1.pdf
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    Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

    Volume (Year): 148 (2012)
    Issue (Month): III (September)
    Pages: 381-407

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    Handle: RePEc:ses:arsjes:2012-iii-1
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    14. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1975. "Transcendental Logarithmic Utility Functions," American Economic Review, American Economic Association, vol. 65(3), pages 367-83, June.
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