Pricing-to-market or hysteresis?: an empirical investigation of German exports
The paper initiates a new area of research: both concepts of hysteresis and pricing-to-market are simultaneously investigated in relation to German exports into Belgium, France, Italy, UK, Spain and Sweden over the period 1975 to 1994 at 4-digit ISIC level. There is abundant empirical evidence that German exports price-to-market. Part of this observed limited exchange rate pass-through, however, might be due to hysteresis as well. A dynamic panel estimation is undertaken, a new concept "pricing-to-market due to hysteresis in quantities" is introduced, and a method for capturing it is proposed. A test for measuring hysteresis in prices is also suggested. There is evidence that hysteresis and pricing-to-market deserve a better empirical modelling.
|Date of creation:||Jan 2005|
|Contact details of provider:|| Postal: Vogelpothsweg 87, D-44227 Dortmund|
Phone: +49 +231 755 3182
Fax: +49 +231 755 4375
Web page: http://www.wiso.uni-dortmund.de/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:mik:wpaper:05_03. 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: (Eva Borchard)
If references are entirely missing, you can add them using this form.