Pricing to Market of Italian Exporting Firms
Author | : Roberto Basile |
Publisher | : |
Total Pages | : 45 |
Release | : 2006 |
ISBN-10 | : OCLC:1290324181 |
ISBN-13 | : |
Rating | : 4/5 (81 Downloads) |
Download or read book Pricing to Market of Italian Exporting Firms written by Roberto Basile and published by . This book was released on 2006 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the pricing-to-market (PTM) behaviour of Italian exporting firms, using quarterly survey data by sector and by region over the period 1999q1-2005q2. A partial equilibrium imperfect competition model provides the structure according to which the orthogonality of structural shocks is derived. Impulse-response analysis shows non-negligible reactions of export domestic price margins to unanticipated changes in cost competitiveness and in foreign and domestic demand levels, even though these effects appear to be of a transitory nature. For the period 1999-2001 a typical PTM behaviour emerges, while during the most recent years favourable foreign demand conditions allowed firms to increase their export-domestic price margins in face of a strong deterioration of their cost competitiveness. Macroeconomic implications of the observed PTM behaviour are also discussed.