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Title: Exchange Rate Pass-Through and the Effects of Tariffs on Economic Performance and Welfare
Authors: 黃俞寧
Hwang, Yu-Ning;Stephen J. Turnovsky
Contributors: 經濟系
Keywords: Tariffs;Nominal rigidity;Exchange rate pass-through;Expenditure switching effect
Date: 2013.03
Issue Date: 2014-05-14 17:49:16 (UTC+8)
Abstract: We develop a stochastic two-country general equilibrium model, where prices are determined under conditions of monopolistic competition to examine the macroeconomic and welfare effects of tariffs on the world economy under alternative nominal rigidities: producer-currency pricing (PCP) and local-currency pricing (LCP) where the exchange rate pass-through is absent. We find that the significance of export pricing for the effects of tariffs depends critically upon whether tariffs are anticipated or unanticipated. In the former case both PCP and LCP yield the same outcome as do perfectly flexible prices, although the mechanism whereby this is achieved is different. In the latter case, the effects of unanticipated permanent tariffs are highly sensitive to the pricing scheme adopted by exporters, leading to a wide range of conflicting outcomes, involving tradeoffs among key parameters.
Relation: Journal of International Money and Finance, 33, 81-102
Data Type: article
DOI 連結:
Appears in Collections:[經濟學系] 期刊論文

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