Article ID Journal Published Year Pages File Type
967287 Journal of Monetary Economics 2010 14 Pages PDF
Abstract
About 40 percent of all U.S. international trades occurs between related parties, or intrafirm, such as trades between a parent and subsidiary of the same multinational corporation. This paper uses a transaction-level dataset that distinguishes arm's length from intrafirm trades to demonstrate that for differentiated products, intrafirm prices are characterized by (1) less stickiness, (2) less synchronization, and (3) greater exchange rate passthrough.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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