Pass-through and Exposure

Details

Serval ID
serval:BIB_4C81EE9844F4
Type
Article: article from journal or magazin.
Collection
Publications
Title
Pass-through and Exposure
Journal
The Journal of Finance
Author(s)
Dumas, B., Bodnar, G., Martson, R. C. 
Publication state
Published
Issued date
2002
Volume
51
Number
1
Pages
199-232
Abstract
Firms differ in the extent to which they "pass through" changes in exchange rates into foreign currency prices and in their "exposure" to exchange rates-the responsiveness of their profits to changes in exchange rates. Because pricing affects profitability, a firm's pass-through and exposure should be related. This paper develops models of exporting firms under imperfect competition to study these related phenomena. From these models we derive the optimal pass-through decisions and the resulting exchange rate exposure. The models are estimated on eight Japanese export industries using both the price data pass-through and financial data for exposure
Create date
19/11/2007 10:26
Last modification date
20/08/2019 14:00
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