10.17889/E112133V1
Rigobon, Roberto
Gopinath, Gita
Itskhoki, Oleg
Replication data for: Currency Choice and Exchange Rate Pass-Through
ICPSR Inter-university Consortium for Political and Social Research
2010
10.1257/aer.100.1.304
10.1257/aer.100.1.304
1
We show, using novel data on currency and prices for US imports, that even
conditional on a price change, there is a large difference in the exchange
rate pass-through of the average good priced in dollars (25 percent) versus
nondollars
(95 percent). We document this to be the case across countries and
within disaggregated sectors. This finding contradicts the assumption in an
important class of models that the currency of pricing is exogenous. We present
a model of endogenous currency choice in a dynamic price setting environment
and show that the predictions of the model are strongly supported by the data.
(JEL E31, F14, F31)