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
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Empirical Studies of Trade
Production, Pricing, and Market Structure; Size Distribution of Firms
income distribution
product quality
markups
Janeba, Eckhard
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:24 MESZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Flach, Lisandra
- Janeba, Eckhard
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2013