Search Results

Showing results 1 to 10 of approximately 24.

(refine search)
SORT BY: PREVIOUS / NEXT
Author:Alessandria, George 

Journal Article
The exchange rate: what's in it for prices?

Large movements in the exchange rate are quite common, and they substantially alter one's purchasing power when traveling abroad. Yet these exchange rate movements tend to have a smaller impact on the price of foreign goods that are imported. Following an appreciation of the euro against the dollar, European firms selling products to American firms for import do not raise their prices by nearly as much as the prices they charge consumers in the European market. Similarly, American firms sell their products at higher prices in Europe than at home. This incomplete, or partial, pass-through of ...
Business Review , Issue Q3 , Pages 1-9

Journal Article
The great trade collapse (and recovery)

The collapse and rebound in U.S. international trade from 2008 to 2010 was quite stunning. Over this period, the fluctuations in international trade were bigger than the fluctuations in either production of or expenditures on traded goods. These relatively large fluctuations in international trade were surprising to some, since international trade had been growing at a very fast pace for quite a long time. They were equally surprising for trade theorists, since these movements in trade arise in standard models of international trade only when the costs of international trade rise and fall ...
Business Review , Issue Q1 , Pages 1-10

Journal Article
Why are goods so cheap in some countries?

Looking around the world, we observe substantial differences across countries in prices for most goods. These price differences also tend to be positively correlated with income differences, so that citizens of high-income countries tend to pay more for the same goods than citizens in low-income countries. In ?Why Are Goods So Cheap in Some Countries?,? George Alessandria and Joseph Kaboski summarize some of the evidence related to the big price differences across countries for a broad set of goods. They then discuss the relationship between prices and income levels and some possible ...
Business Review , Issue Q2 , Pages 1-12

Working Paper
Inventories, lumpy trade, and large devaluations

Fixed transaction costs and delivery lags are important costs of international trade. These costs lead firms to import infrequently and hold substantially larger inventories of imported goods than domestic goods. Using multiple sources of data, we document these facts. We then show that a parsimoniously parameterized model economy with importers facing an (S, s)-type inventory management problem successfully accounts for these features of the data. Moreover, the model can account for import and import price dynamics in the aftermath of large devaluations. In particular, desired inventory ...
Working Paper Series , Paper WP-08-07

Working Paper
Export dynamics in large devaluations

We study the source and consequences of sluggish export dynamics in emerging markets following large devaluations. We document two main features of exports that are puzzling for standard trade models. First, given the change in relative prices, exports tend to grow gradually following a devaluation. Second, high interest rates tend to suppress exports. To address these features of export dynamics, we embed a model of endogenous export participation due to sunk and per period export costs into an otherwise standard small open economy. In response to shocks to productivity, the interest rate, ...
International Finance Discussion Papers , Paper 1087

Working Paper
Inventories, lumpy trade, and large devaluations

Fixed transaction costs and delivery lags are important costs of international trade. These costs lead firms to import infrequently and hold substantially larger inventories of imported goods than domestic goods. Using multiple sources of data, we document these facts. We then show that a parsimoniously parameterized model economy with importers facing an (S, s)-type inventory management problem successfully accounts for these features of the data. Moreover, the model can account for import and import price dynamics in the aftermath of large devaluations. In particular, desired inventory ...
Working Paper Series , Paper 2008-24

Journal Article
Trade deficits aren’t as bad as you think

Although the amount of U.S. imports and exports has varied greatly over time, in recent years, the U.S. has been running trade deficits. Some people react to such trade deficits with doom and gloom; others cite them as evidence that foreign governments are not playing fair in U.S. markets; still others argue that deficits demonstrate that we are living beyond our means. In ?Trade Deficits Aren?t as Bad as You Think,? George Alessandria offers an alternative view: Trade deficits have benefits. They shift worldwide production to its most productive locations, and they allow individuals to ...
Business Review , Issue Q1 , Pages 1-10

Journal Article
Understanding exports from the plant up

Some companies export their products abroad, while others choose to sell only in their home market. Similarly, over time, some nonexporters become exporters and some exporters stop exporting. The decision to export is a big, important decision for an organization, one that takes time and resources but one that can lead to an expansion of sales and profits. Policymakers recognize that although exporting isn?t easy, it can boost sales and create jobs when successful. To help in this process, many states devote substantial resources to encouraging exports, including loans, trade missions, and ...
Business Review , Issue Q4 , Pages 1-11

Working Paper
Export dynamics in large devaluations

We study the source and consequences of sluggish export dynamics in emerging markets following large devaluations. We document two main features of exports that are puzzling for standard trade models. First, given the change in relative prices, exports tend to grow gradually following a devaluation. Second, high interest rates tend to suppress exports. To address these features of export dynamics, we embed a model of endogenous export participation due to sunk and per period export costs into an otherwise standard small open economy. In response to shocks to productivity, the interest rate, ...
Working Papers , Paper 13-33

Working Paper
Establishment heterogeneity, exporter dynamics, and the effects of trade liberalization

The authors study the effects of tariffs in a dynamic variation of the Melitz (2003) model, a monopolistically competitive model with heterogeneity in productivity across establishments and fixed costs of exporting. With fixed costs of starting to export that are on average 3.7 times as large as the costs incurred to continue as an exporter, the model can match both the size distribution of exporters and annual transition in and out of exporting among US manufacturing establishments. The authors find that the tariff equivalent of these fixed costs is nearly 30 percentage points. They use the ...
Working Papers , Paper 11-19

FILTER BY year

FILTER BY Content Type

FILTER BY Author

Kaboski, Joseph P. 10 items

Choi, Horag 8 items

Midrigan, Virgiliu 7 items

Pratap, Sangeeta 2 items

Yue, Vivian Z. 2 items

show more (4)

FILTER BY Jel Classification

E31 2 items

F12 2 items

FILTER BY Keywords

PREVIOUS / NEXT