Accounting for Incomplete Pass-Through

  title={Accounting for Incomplete Pass-Through},
  author={Emi Nakamura and Dawit Zerom},
  journal={ERN: Other Microeconomics: Production},
Recent theoretical work has suggested a number of potentially important factors in causing incomplete pass-through of exchange rates to prices, including markup adjustment, local costs and barriers to price adjustment. We empirically analyze the determinants of incomplete passthrough in the coee industry. The observed pass-through in this industry replicates key features of pass-through documented in aggregate data: prices respond sluggishly and incompletely to changes in costs. We use… 

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