Arbeitspapier

Income Inequality and Export Prices across Countries

This paper provides first firm-level evidence of the links between income inequality and the patterns of trade and export prices. We identify a theoretical mechanism behind these links, which suggests that a more unequal income distribution leads to higher average prices. We test the theory using detailed data for Brazilian exporters and find that the destination countries' first and second moment of the income distribution are important determinants of export prices. Controlling for income per capita, prices are systematically higher in more unequal countries, with this effect being particularly relevant for middle-income countries and holding only for differentiated goods.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 4298

Klassifikation
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Empirical Studies of Trade
Production, Pricing, and Market Structure; Size Distribution of Firms
Thema
export prices
income distribution
product quality
markups

Ereignis
Geistige Schöpfung
(wer)
Flach, Lisandra
Janeba, Eckhard
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2013

Handle
Letzte Aktualisierung
20.09.2024, 08:24 MESZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Flach, Lisandra
  • Janeba, Eckhard
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2013

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