Pass-through of trade costs to U.S. import prices

@article{Yilmazkuday2015PassthroughOT,
  title={Pass-through of trade costs to U.S. import prices},
  author={Hakan Yilmazkuday},
  journal={Review of World Economics},
  year={2015},
  volume={151},
  pages={609-633}
}
  • H. Yilmazkuday
  • Published 1 January 2015
  • Economics
  • Review of World Economics
This paper measures the pass-through of trade costs into U.S. import prices by using actual data on duties/tariffs and freight-related costs. The key innovation is to decompose the indirect effects of trade costs (on prices) into the effects 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… 

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