scholarly journals International Shocks and Domestic Prices: How Large Are Strategic Complementarities?

2016 ◽  
Author(s):  
Mary Amiti ◽  
Oleg Itskhoki ◽  
Jozef Konings
Keyword(s):  
Strategic Complementarities ◽  
Domestic Prices ◽  
International Shocks

scholarly journals International Shocks, Variable Markups, and Domestic Prices

2019 ◽  
Vol 86 (6) ◽  
pp. 2356-2402 ◽  
Author(s):  
Mary Amiti ◽  
Oleg Itskhoki ◽  
Jozef Konings
Keyword(s):  
Small Firms ◽  
Manufacturing Sector ◽  
Price Setting ◽  
Price Changes ◽  
Strategic Complementarities ◽  
Variable Markups ◽  
Domestic Prices ◽  
Pass Through ◽  
International Shocks ◽  
Exchange Rate Pass Through

Abstract How strong are strategic complementarities in price setting across firms? In this article, we provide a direct empirical estimate of firms’ price responses to changes in competitor prices. We develop a general theoretical framework and an empirical identification strategy, taking advantage of a new micro-level dataset for the Belgian manufacturing sector. We find strong evidence of strategic complementarities, with a typical firm adjusting its price with an elasticity of 0.4 in response to its competitors’ price changes and with an elasticity of 0.6 in response to its own cost shocks. Furthermore, we find evidence of substantial heterogeneity in these elasticities across firms. Small firms exhibit no strategic complementarities in price setting and complete cost pass-through. In contrast, large firms exhibit strong strategic complementarities, responding to both competitor price changes and their own cost shocks with roughly equal elasticities of around 0.5. We show that this pattern of heterogeneity in markup variability across firms is important for explaining the aggregate markup response to international shocks and the observed low exchange rate pass-through into domestic prices.

Perspectives on inflation Targeting Regime in Russia

2014 ◽  
pp. 107-121 ◽  
Author(s):  
S. Andryushin
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Interest Rates ◽  
Inflation Targeting ◽  
Short Term ◽  
Indirect Control ◽  
Financial Account ◽  
Domestic Prices ◽  
Macroeconomic Indicators ◽  
Private And Public

The paper analyzes monetary policy of the Bank of Russia from 2008 to 2014. It presents the dynamics of macroeconomic indicators testifying to inability of the Bank of Russia to transit to inflation targeting regime. It is shown that the presence of short-term interest rates in the top borders of the percentage corridor does not allow to consider the key rate as a basic tool of monetary policy. The article justifies that stability of domestic prices is impossible with-out exchange rate stability. It is proved that to decrease excessive volatility on national consumer and financial markets it is reasonable to apply a policy of managing financial account, actively using for this purpose direct and indirect control tools for the cross-border flows of the private and public capital.

On Strategic Complementarities in Discontinuous Games

2015 ◽  
Author(s):  
Pavlo Prokopovych ◽  
Nicholas C. Yannelis
Keyword(s):  
Discontinuous Games ◽  
Strategic Complementarities

The Response of Domestic Prices to Expected Exchange Rates

1992 ◽  
Vol 65 (2) ◽  
pp. 267 ◽  
Author(s):  
Robert M. Feinberg ◽  
Seth Kaplan
Keyword(s):  
Exchange Rates ◽  
Domestic Prices

Higher tax to replace Russia's metal export duty

2021 ◽  
Keyword(s):  
Income Tax ◽  
Corporate Income Tax ◽  
Content Type ◽  
Export Duty ◽  
Eurasian Economic Union ◽  
Domestic Prices ◽  
Economic Union ◽  
The Government

Significance Officials are trying to correct high domestic prices which they see as unjustified, and to claw back what they regard as excessive profits earned by metals companies. Impacts Export duties could exert upward pressure on global prices of steel, nickel and aluminium. Exports to the Eurasian Economic Union are exempt, so the government will need a failsafe system to prevent re-exports to third countries. The export duties will reduce the corporate income tax earned by metal-producing regions.

A Constructive Study of Markov Equilibria in Stochastic Games with Strategic Complementarities

2010 ◽  
Author(s):  
Lukasz Balbus ◽  
Kevin L. Reffett ◽  
Lukasz Patryk Wozny
Keyword(s):  
Stochastic Games ◽  
Strategic Complementarities ◽  
Markov Equilibria

Nash equilibrium with strategic complementarities

1990 ◽  
Vol 19 (3) ◽  
pp. 305-321 ◽  
Author(s):  
Xavier Vives
Keyword(s):  
Nash Equilibrium ◽  
Strategic Complementarities

scholarly journals Do international shocks affect small wholesalers and retailers?

2010 ◽  
Vol 146 (2) ◽  
pp. 323-338 ◽  
Author(s):  
Robert M. Feinberg
Keyword(s):  
International Shocks
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