Pass-through of Trade Costs to U . S . Import Prices

  title={Pass-through of Trade Costs to U . S . Import Prices},
  author={Hakan Yilmazkuday},
  • Hakan Yilmazkuday
  • Published 2015
This paper measures the pass-through of trade costs into U.S. import prices by using actual data on duties/tari¤s and freight-related costs. The key innovation is to decompose the indirect e¤ects of trade costs (on prices) into the e¤ects on markups, quality and productivity while measuring/interpreting the pass-through of trade costs into welfare. Robust to the consideration of variable versus constant markups, there is evidence for incomplete pass-through, mostly due to the negative indirect… CONTINUE READING
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