Quality , Trade , and Exchange Rate Pass-Through ¤ y

  title={Quality , Trade , and Exchange Rate Pass-Through ¤ y},
  author={Natalie C. Chen},
This paper investigates the heterogeneous response of exporters to real exchange rate ‡uctuations due to product quality. We combine a unique data set of highly disaggregated Argentinean ...rm-level wine export values and volumes between 2002 and 2009 with experts wine ratings as a measure of quality. In response to a real depreciation, we ...nd that ...rms signi...cantly increase more their markups and less their export volumes for higher quality products, but only when exporting to high… CONTINUE READING