Incomplete Exchange-Rate Pass-Through and Imperfect Competition: The Effect of Local Production
研究了本地生产对汇率传递的影响，发现日本汽车企业在美国市场对成本冲击的传递是不完全的，包括日本成本变化和美国本地生产成本变化。
extent to which product prices respond to exchange-rate-induced changes in costs. This research has revealed that the percentage change in the prices of imported goods is smaller than the percentage change in exchange rates of the exporting country and that price responses differ across destinations, a phenomenon termed to This finding may indicate market imperfections in international trade: for example, those that may arise in the case of segmented markets. Alternatively, these empirical facts may reflect the sale of products whose production occurs in multiple locations. When firms are able to shift their production across borders or alter their location of sourcing, their costs will not change one-for-one with home-country exchange-rate movements, and therefore their prices are unlikely to change one-for-one with exchange-rate movements. However, this possibility has not been addressed empirically in the literature on pricing to market.' This study contributes to the literature by estimating exchangerate pass-through while controlling for local production in the destination market. We focus on the U.S. automobile market, and the pricing of U.S. and Japanese firms in particular for several reasons. First, we have product-level information on pricing and content, and there is substantial variation in destination-country production across products and over time. Second, existing studies have found evidence of pricing to market and incomplete exchange-rate passthrough in automobile markets, providing a useful comparison for our results and making this an appropriate market in which to study the effect of local production on exchange-rate passthrough. Consistent with other studies, we find that Japanese firms partially pass-through Japanese cost changes to their U.S. customers. In addition, we find that this partial pass-through characterizes not only Japanese cost shocks, but cost shocks that these Japanese firms experience in their U.S. production. This finding persists in a sample that includes both U.S. and Japanese firms; automobile firms generally do not pass-through cost shocks in their entirety. Our data also show that those Japanese auto