It is well established in the literature that minimum wage increases compress the wage
distribution. Firms respond to these higher labour costs by reducing employment, reducing …

Import prices typically change by a smaller proportion than the exchange rate between the
exporting and importing country. Recent research indicates that common-currency relative …

Trade is a cornerstone concept in economics worldwide. This updated second edition of the
essential graduate textbook in international trade brings readers to the forefront of …

This paper tests a textbook consequence of competitive markets: that an industry-wide
increase in the price of labor is passed on to consumers through an increase in prices …

We use retail transaction prices for a multinational retailer to examine the extent and
permanence of violations of the law of one price. For identical products, we find typical …

This paper investigates nonlinearities in the exchange rate pass-through (ERPT) to
consumer and import prices by estimating a smooth transition regression model with …

Both traded and nontraded goods prices can be sensitive to exchange rate movements.
There are a number of forces that contribute to less than complete pass-through of exchange …

Economists have devoted substantial work to understanding the pricing behavior of
exporting firms in the presence of variations in the exchange rate. Much of this research has …

The paper uses micro‐level price data from the European car market to examine why there
are deviations from the law of one price. The absolute law of one price is strongly rejected …

The macroeconomic evidence of the short-term impact of exchange rates on exports and
prices is notoriously weak. This paper examines the microfoundations of this disconnect. I …