In this chapter, the authors use an EGARCH-ECM to estimate the pass-through effects of Foreign Exchange (FX) rate changes and changes in producers’ prices for 20 U.K. export sectors. The long-run adjustments of export prices to FX rate changes and changes in producers’ prices are within the range of –1.02% (for the Textiles sector) and –17.22% (for the Meat sector). The contemporaneous PricingT...

This paper focuses on the pass-through of exchange rate fluctuations into prices of final goods and services, and examines whether contrasting pass-through rates are associated with regionaland/or product-specific characteristics. Using CPI microdata, we estimate industry-specific rates of pass-through across regions in Mexico. By looking at within country price responses, this study alleviates...

Recent work by Devereux, Engel, and Storgaard (2004, JIE, pp. 286), suggests that one of the key channels through which monetary policy may work is by changing the degree of pass-through. Inspired by this observation, we develop a unified estimation framework within a fully specified open macroeconomic model where both pass-through and exchange rates are endogenously determined so as to empiric...

Using a sample from January 1988 to December 2005 for exports of five Japanese major ports to six destination countries, we examine the effect of market share (with respect to competitors from the same country) on exchange rate pass-through (henceforth, ERPT). Our dataset is unique, allowing us to control for market shares among competing exporters with the same nationality. A close examination...