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Commodity Prices Pass-Through

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  • Roberto Rigobon

Abstract

I use a unique micro price data to estimate the pass-through from commodity prices to retail prices in several countries. The paper presents and develops a simple methodology to estimate the pass-through from the prices of different commodities into various sectors across several countries. This is the first exercise of this type. As expected, countries respond differently to the different shocks; and sectors respond differently across countries and commodities. A third of all the explained variation is driven by sectoral characteristics, which is a dimension mostly disregarded by the literature.

Suggested Citation

  • Roberto Rigobon, 2010. "Commodity Prices Pass-Through," Working Papers Central Bank of Chile 572, Central Bank of Chile.
  • Handle: RePEc:chb:bcchwp:572
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    Cited by:

    1. repec:eee:wdevel:v:96:y:2017:i:c:p:216-230 is not listed on IDEAS
    2. Michael Pedersen, 2011. "Propagation of Shocks to Food and Energy Prices: an International Comparison," Working Papers Central Bank of Chile 648, Central Bank of Chile.
    3. Bekkers, Eddy & Brockmeier, Martina & Francois, Joseph & Yang, Fan, 2017. "Local Food Prices and International Price Transmission," World Development, Elsevier, vol. 96(C), pages 216-230.

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