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Degree of competition and export-production relative prices when the exchange rate changes: evidence from a panel of Czech exporting companies
Podpiera, Jiří ; Raková, Marie
In this paper writers show the relevance of the degree of competition for inferences about changes in export-production relative prices when the nominal exchange rate changes. They devise a model for tradable goods that combines the market competition and the pricing-to-market literature and we empirically document the contrast between perfectly and imperfectly competitive markets for the export-production relative price responses to exchange rate changes.
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