Logo der Universität Basel

Research Database / FORSCHUNGSDATENBANK 
PRINTDOC
 
Publication 4651434 | Verified
 

Data Entry: Please note that the research database will be replaced by UNIverse by the end of October 2023. Please enter your data into the system https://universe-intern.unibas.ch. Thanks

Login for users with Unibas email account...

Login for registered users without Unibas email account...

 
Endogenous Product Adjustment and Exchange Rate Pass-Through
Discussion paper / Internet publication
 
ID 4651434
Author(s) Freitag, Andreas; Lein, Sarah
Author(s) at UniBasel Freitag, Andreas
Lein, Sarah
Year 2022
Month and day 11-18
Year: comment 2022
Title Endogenous Product Adjustment and Exchange Rate Pass-Through
Series title WWZ Working Paper
Volume 2022
Number 09
Pages 38
Publisher / Institution WWZ
Keywords large exchange rate shocks, exchange rate pass-through, quality adjustment
Abstract We document how product quality responds to exchange rate movements and quantify the extent to which these quality changes affect the aggregate pass-through into export prices. We analyze the substantial sudden appreciation of the Swiss franc post removal of the 1.20-CHF-per-euro lower bound in 2015 using export data representing a large share of the universe of goods exports from Switzerland. We find that firms upgrade the quality of their products after the appreciation. Furthermore, they disproportionately remove lower-quality products from their product ranges. This quality upgrading and quality sorting effect accounts for a substantial share of the total pass-through one year after the appreciation. We cross-check our results with the microdata underlying the Swiss export price index, which includes an adjustment factor for quality based on firms' reported product replacements, and obtain similar results.
edoc-URL https://edoc.unibas.ch/90343/
Full Text on edoc Available
 
   

MCSS v5.8 PRO. 0.474 sec, queries - 0.000 sec ©Universität Basel  |  Impressum   |    
03/05/2024