Exchange Rate Pass‐through to Trade Prices: The Role of Nonlinearities and Asymmetries
检验了G7经济体出口和进口价格中汇率传递的线性和对称性假设，发现非线性和非对称性不可忽视，但其程度因国家而异。
Abstract A standard assumption in the empirical literature is that exchange rate pass‐through is both linear and symmetric. This study tests these assumptions for export and import prices in the G7 economies. It focuses on non‐linearities in the reaction of profit margins to exchange rate movements, which may arise from the presence of price rigidities and switching costs. Nonlinearities are characterized by augmenting a standard linear model with polynomial functions of the exchange rate and with interactive dummy variables. The results suggest that nonlinearities and especially asymmetries cannot be ignored, although their magnitude varies noticeably across countries.