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Title: |
Pricing to Market in Response to Unobservable
and Observable Shocks |
| Author: |
Knetter,
Michael M. |
| Author
Affiliation: |
Dartmouth
College |
| Source: |
International Economic Journal, Summer 1995, v. 9, no. 2, pp. 1-25 |
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Publication Date: |
Summer 1995 |
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Abstract: |
This paper generalizes an empirical
framework used to study export price adjustment to multiple destination
markets. The framework can identify demand parameters without making
restrictive assumptions about the functional form of cost or demand and
without reliance on cost data. The method relies on imposing a symmetric
response of export prices to marginal cost and exchange rate changes.
The specification relying on this identifying restriction is tested
using German and U.S. 7-digit industry export unit values against
alternative identifying restrictions used in earlier work. |
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