THE IMPACT OF A LARGE DEPRECIATION ON THE COST OF LIVING OF RICH AND POOR CONSUMERS

Colicev, Anatoli ORCID: 0000-0002-3311-8334, Hoste, Joris and Konings, Jozef (2024) THE IMPACT OF A LARGE DEPRECIATION ON THE COST OF LIVING OF RICH AND POOR CONSUMERS. International Economic Review, 65 (4). pp. 1625-1656. ISSN 0020-6598, 1468-2354

Access the full-text of this item by clicking on the Open Access link.

[thumbnail of Int Economic Review - 2024 - Colicev - THE IMPACT OF A LARGE DEPRECIATION ON THE COST OF LIVING OF RICH AND POOR CONSUMERS.pdf]

PDF
Int Economic Review - 2024 - Colicev - THE IMPACT OF A LARGE DEPRECIATION ON THE COST OF LIVING OF RICH AND POOR CONSUMERS.pdf - Other
Download (1MB) | Preview

Official URL: https://doi.org/10.1111/iere.12720

Abstract

<jats:title>Abstract</jats:title><jats:p>Using retailer scanner data, we investigate how a sharp and abrupt depreciation of the exchange rate affects consumers' cost of living. We find that the marginal cost of imported goods increased, whereas their retail markups decreased compared to domestic products. There was also a surge in the entry and exit of both foreign and local product varieties post‐depreciation. Wealthier consumers, who spend more on imports, are hit harder by higher marginal costs but benefit from reduced markups and increased product diversity, unlike their less affluent counterparts.</jats:p>

Item Type:	Article
Additional Information:	Source info: CEPR Discussion Paper No. DP16869
Uncontrolled Keywords:	depreciation, exchange rate pass through, scanner data
Depositing User:	Symplectic Admin
Date Deposited:	26 Jul 2024 15:52
Last Modified:	08 Dec 2024 02:15
DOI:	10.1111/iere.12720
Open Access URL:	https://onlinelibrary.wiley.com/doi/full/10.1111/i...
Related URLs:	Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3183162