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Outsourcing and pass-through AgEcon
Hellerstein, Rebecca; Villas-Boas, Sofia Berto.
Revised October 2008 Revised on December, 2009 Revised on February 26, 2010
Tipo: Working Paper Palavras-chave: Exchange-rate pass-through; Intra-firm trade; Vertical contracts; Outsourcing; Financial Economics; Industrial Organization; F14; F3; F4.
Ano: 2010 URL: http://purl.umn.edu/120490
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Arm's-Length Transactions as a Source of Incomplete Cross-Border Transmission: the Case of Autos AgEcon
Hellerstein, Rebecca; Villas-Boas, Sofia Berto.
A growing share of international trade occurs through intra-firm transactions, transactions between domestic and foreign subsidiaries of a multinational firm. The difficulties associated with writing and enforcing a vertical contract compound when a product must cross a national border, and may explain the high rate of multinational trade across such borders. We show that this common crossborder organization of the firm may have implications for the well-documented incomplete transmission of shocks across such borders. We present new evidence of a positive relationship between an industry's share of multinational trade and its rate of exchange-rate pass-through to prices. We then develop a structural econometric model with both manufacturers and retailers...
Tipo: Working or Discussion Paper Palavras-chave: Cross-border transmission: Multinationals; Arm's-length transactions; Real exchange rates; Exchange-rate pass-through; Vertical contracts; Autos; International Relations/Trade; F14; F3; F4.
Ano: 2006 URL: http://purl.umn.edu/7196
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Identification of Supply Models of Retailer and Manufacturer Oligopoly Pricing AgEcon
Villas-Boas, Sofia Berto; Hellerstein, Rebecca.
This note outlines conditions under which we can identify a vertical supply model of multiple retailers' and manufacturers' oligopoly-pricing behavior. This is an important question particularly when the researcher believes, contrary to the traditional assumption followed in the empirical literature, that retailers may not be neutral pass-through intermediaries. We show that a data-set of an industry's product prices, quantities, and input prices over time is sufficient to identify the vertical model of retailers' and manufacturers' oligopoly-pricing behavior given nonlinear demand, for homogeneous-products industries, and given multi-product firms, for differentiated-products industries.
Tipo: Working or Discussion Paper Palavras-chave: Identification; Vertical relationships; Oligopoly models of multiple manufacturers and retailers.; Demand and Price Analysis; Industrial Organization; L13; L22.
Ano: 2004 URL: http://purl.umn.edu/25052
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