Some Empirical Evidence on Hysteresis in Aggregate US Import Prices
This paper empirically investigates the hypothesis that hysteresis has occurred in US aggregate non-oil import prices. We find strong evidence that a shift has occurred in the exchange rate pass-through relationship in the 1980~~ and that the nature of the shift is consistent with the hysteresis hypothesis. Results on two specific structural models of this phenomenon (the beachhead model and the bottleneck model) are less conclusive. The data broadly support both models, but neither by itself can provide a convincing accounting of all the evidence.
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| Length: | |
| Date of creation: | Jan 1988 |
| Date of revision: | |
| Publication status: | published as Baldwin, Richard E. "Hysteresis In Import Prices: The Beachhead Effect," American Economic Review, 1988, v78(4), 773-785. |
| Handle: | RePEc:nbr:nberwo:2483 |
| Note: | ITI IFM |
| Contact details of provider: | Postal: Phone: 617-868-3900 Web page: http://www.nber.orgEmail: More information through EDIRC
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Baldwin, Richard, 1988.
"Hyteresis in Import Prices: The Beachhead Effect,"
American Economic Review,
American Economic Association, vol. 78(4), pages 773-85, September.
- Richard Baldwin, 1988. "Hysteresis In Import Prices: The Beachhead Effect," NBER Working Papers 2545, National Bureau of Economic Research, Inc.
- Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr.
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- Catherine L. Mann, 1986. "Prices, profit margins, and exchange rates," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jun, pages 366-379.
- Baldwin, Richard, 1990. "Hysteresis in Trade," Empirical Economics, Springer, vol. 15(2), pages 127-42.
- Charles Bean, 1988.
"Sterling Misalignment and British Trade Performance,"
NBER Chapters,
in: Misalignment of Exchange Rates: Effects on Trade and Industry, pages 39-76
National Bureau of Economic Research, Inc.
- Bean, Charles R, 1987. "Sterling Misalignment and British Trade Performance," CEPR Discussion Papers 177, C.E.P.R. Discussion Papers.
- Paul R. Krugman & Richard E. Baldwin, 1987. "The Persistence of the U.S. Trade Deficit," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(1), pages 1-56.
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