Arbeitspapier
Retailers and Consumers: The pass-through of import price changes
In this paper, we estimate pass-through rates of import price changes to retail prices across retailers and consumers for apparel purchases in Germany for the period of 2000 to 2007. We find that high-price retailers do not pass through changes in the import price. Pass-through rates for low-price retailers are 53% within 3 months. Consequently, pass-through rates for low-income households are 58%, significantly larger than those for high-income households. We then present one possible explanation for these observations in a theoretical model with endogenous vertical product differentiation due to bundling an ex-ante homogeneous import good with services. Following an import price change, retailers who sell a cheaper unbundled product change prices to a greater extent than retailers who sell a higher-priced bundle of product and service.
- Sprache
-
Englisch
- Erschienen in
-
Series: cege Discussion Papers ; No. 133 [rev.]
- Klassifikation
-
Wirtschaft
Consumer Economics: Empirical Analysis
Personal Income, Wealth, and Their Distributions
Trade: General
- Thema
-
import prices
pass-through
retailers
households
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Berner, Eike
Birg, Laura
Boddin, Dominik
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Göttingen, Center for European, Governance and Economic Development Research (cege)
- (wo)
-
Göttingen
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Berner, Eike
- Birg, Laura
- Boddin, Dominik
- University of Göttingen, Center for European, Governance and Economic Development Research (cege)
Entstanden
- 2016
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