Economics, Econometrics and Finance
5 years ago

Swiss firms adapt export prices differently after currency appreciation shock.

RePEc: Research Papers in Economics
Export Prices, Markups, and Currency Choice after a Large Appreciation
Daniel Kaufmann, Tobias Renkin

Paper Summary

Swiss manufacturing firms adjusted their export prices differently after the Swiss franc appreciated. Firms that priced exports in foreign currency lowered prices less than those pricing in domestic currency. This was due to strategic pricing behavior among firms using foreign currency. Firms using domestic currency did not show this behavior and followed a consistent pricing rule.

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