Anmerkungen:
In: Review of International Economics, 15, 2006, pp. 836-848
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 1, 2005 erstellt
Beschreibung:
This working paper was written by Yin-wong Cheung (University of California Santa Cruz) and Eiji Fujii (University of Tsukuba).Using annual data on nine manufacturing sectors of eighteen OECD countries, the article studies the implications of market structure for cross-country relative price variability. It is found that, in accordance with predictions from a standard markup pricing model, reductions in market competition, along with increased nominal exchange rate volatility, are associated with greater variability of cross-country relative prices. The market structure also has similar effects on components of cross-country relative price variability. The empirical findings are robust to the inclusion of various control variables and alternative sample specifications