Arbeitspapier

Unequal Expenditure Switching: Evidence from Switzerland

What are the unequal effects of changes in consumer prices on the cost of living? In the context of changes in import prices (driven by, e.g., changes in trade costs or exchange rates), most analyses focus on variation across households in initial expenditure shares on imported goods. However, the unequal welfare effects of non-marginal foreign price changes also depend on differences in how consumers substitute between imported and domestic goods, on which there is scant evidence. Using data from Switzerland surrounding the 2015 appreciation of the Swiss franc, we provide evidence that lower-income households have higher price elasticities. We quantify the contribution of heterogeneous elasticities for the unequal welfare effects of observed price changes between 2014–15 and for counterfactual shocks to the mean and dispersion of import price changes.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 10810

Klassifikation
Wirtschaft
Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
Trade: General
Open Economy Macroeconomics

Ereignis
Geistige Schöpfung
(wer)
Auer, Raphael
Burstein, Ariel
Lein, Sarah
Vogel, Jonathan
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2023

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Auer, Raphael
  • Burstein, Ariel
  • Lein, Sarah
  • Vogel, Jonathan
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2023

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