{"id":{"repo_id":"uiuc","oai_identifier":"oai:www.ideals.illinois.edu:2142/22585"},"canonical_url":"https://search.dev.ndltd.org/etd/uiuc/oai:www.ideals.illinois.edu:2142/22585","repository":{"repo_id":"uiuc","name":"University of Illinois - Urbana-Champaign","base_url":"https://www.ideals.illinois.edu/oai-pmh"},"display":{"title":"Exchange rate pass-through: Theoretical and empirical issues","abstract":"U of I Only","abstract_html":"U of I Only","abstract_has_math":false,"creators":["Bishop, Paul Charles"],"institution":"University of Illinois at Urbana-Champaign","degree_name":"Ph.D.","degree_level":"Dissertation","degree_discipline":"Economics","degree_department":null,"school":null,"contributors":["Grinols, Earl L."],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2011,"date_issued":"2011-05-07T13:44:37Z","date_published":"2011-05-07T13:44:37Z","updated_at":"2026-07-22T22:25:20Z","subjects":["Economics, General","Economics, Theory"],"languages":["eng"],"rights":["Copyright 1994 Bishop, Paul Charles"],"rights_urls":[],"identifier_entries":[{"key":"dc:identifier","label":"Identifier","values":["AAI9512302","(UMI)AAI9512302"],"render_values":[{"text":"AAI9512302","href":null,"code":true},{"text":"(UMI)AAI9512302","href":null,"code":true}]}]},"links":{"outbound_url":"http://hdl.handle.net/2142/22585","outbound_label":"Handle","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor","label":"Contributor","values":["Grinols, Earl L."]},{"key":"dc:creator","label":"Author","values":["Bishop, Paul Charles"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2011-05-07T13:44:37Z","10000-01-01","1994"]},{"key":"dc:type","label":"Dc Type","values":["text"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["Economics"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Dissertation"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Ph.D."]},{"key":"thesis:institution_name","label":"Thesis Institution Name","values":["University of Illinois at Urbana-Champaign"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Economics, General","Economics, Theory"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language","label":"Dc Language","values":["eng"]},{"key":"dc:rights","label":"Dc Rights","values":["Copyright 1994 Bishop, Paul Charles"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["AAI9512302","(UMI)AAI9512302","http://hdl.handle.net/2142/22585"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["U of I Only","This dissertation examines several theoretical and empirical issues associated with exchange rate pass-through, defined as the percentage change in import prices for a one percent change in the exchange rate. The theoretical sections of this study posit a conjectural variations model of industrial competition. In its simplest form there is one domestic and one foreign firm that each set a price for a differentiated good based on simple profit maximization criteria under various conjectures about the other firm's response. Unlike previous pass-through models, it is recognized that firms use inputs that can be from a home or foreign country supplier. Sourcing is defined as the extent to which one firm uses as an input a good from the other country. Therefore, the extent to which each firm uses a sourced input will expose each firm's costs to exchange rate fluctuations. It is shown that as the extent of sourcing by the foreign firm increases, the pass-through elasticity on domestic import prices becomes more inelastic. Thus, we would expect that as the amount of inter-industry trade in intermediate goods increases, import prices would become less responsive to the exchange rate. The model is extended to an industry structure where there is a set of identical domestic and a set of identical foreign firms. It is shown that as the number of foreign firms increases, the pass-through elasticity becomes more elastic.","The empirical section of the study estimates exchange rate pass-through for manufactured goods and for auto imports from five countries. Using the technique of Transfer Function-Noise Models, it is shown that for manufactured goods, import prices did not change as much as historical experience would have suggested given the exchange rate swing of the eighties. A statistically valid measure of the size of the deviation is calculated along with a test for structural stability of the model. In all cases, the test for stability indicated that a structural change occurred during the early eighties exchange rate appreciation. Similar results are also derived for auto imports from Germany, Italy and Japan.","Made available in DSpace on 2011-05-07T13:44:37Z (GMT). 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The theoretical sections of this study posit a conjectural variations model of industrial competition. In its simplest form there is one domestic and one foreign firm that each set a price for a differentiated good based on simple profit maximization criteria under various conjectures about the other firm's response. Unlike previous pass-through models, it is recognized that firms use inputs that can be from a home or foreign country supplier. Sourcing is defined as the extent to which one firm uses as an input a good from the other country. Therefore, the extent to which each firm uses a sourced input will expose each firm's costs to exchange rate fluctuations. It is shown that as the extent of sourcing by the foreign firm increases, the pass-through elasticity on domestic import prices becomes more inelastic. Thus, we would expect that as the amount of inter-industry trade in intermediate goods increases, import prices would become less responsive to the exchange rate. The model is extended to an industry structure where there is a set of identical domestic and a set of identical foreign firms. It is shown that as the number of foreign firms increases, the pass-through elasticity becomes more elastic.","The empirical section of the study estimates exchange rate pass-through for manufactured goods and for auto imports from five countries. Using the technique of Transfer Function-Noise Models, it is shown that for manufactured goods, import prices did not change as much as historical experience would have suggested given the exchange rate swing of the eighties. A statistically valid measure of the size of the deviation is calculated along with a test for structural stability of the model. In all cases, the test for stability indicated that a structural change occurred during the early eighties exchange rate appreciation. Similar results are also derived for auto imports from Germany, Italy and Japan.","Made available in DSpace on 2011-05-07T13:44:37Z (GMT). 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