The rate of cost pass-through exceeds 50% under strategic delegation of decision-making to managers with sales revenue contracts— regardless of the number of …rms in the industry and demand curvature. This contrasts sharply with pro…t-maximization, for which cost pass-through can take on any positive value. The key intuition is that …rms under delegation act as if they faced more rivals than th...

This paper examines the monetary transmission mechanism in the countries of the Central African Economic and Monetary Community (CAEMC). Specifically, we focus on the very first step of this mechanism namely the interest rate pass-through from short-term interest rates towards long-term rates. Using an autoregressive distributed lag (ADRL) model, we show that there is evidence of a very low and...

exchange rate pass-through to the price of traded goods is one of the important issues in economy of developing countries such as iran and affects the efficiency of the exchange rate policies to improve the trade balance. the main aim of this paper is to empirically analyze exchange rate pass-through to iran's saffron export price using panel data for twenty destination markets during 2000...

We document how product quality responds to exchange rate movements and quantify the extent which these changes affect aggregate pass-through into export prices. analyze substantial sudden appreciation of Swiss franc post removal 1.20-CHF-per-euro lower bound in 2015 using data representing a large share universe goods exports from Switzerland. find that firms upgrade their products after appre...

The macroeconomic evidence on the short-term impact of exchange rates on exports and prices is notoriously weak. In this paper I examine the micro-foundations of this disconnect by looking at firms’ export and price setting decisions in response to fluctuations in exchange rates and credit conditions using German firm survey data. Firmlevel data on pricing and export expectations enables me to ...

The paper examines the effect of exchange rate changes on consumer prices in Ghana using vector autoregression (VAR) models. Using a data set covering the period 1990M01–2009M02, we find that the exchange rate pass-through to inflation is ‘incomplete’ and decreasing in Ghana. Our empirical results indicate a low but significant pass-through in the short run. We argue that the findings reflect t...