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Pricing to market of Italian exporting firms

Author

Listed:
  • Roberto Basile

    (ISAE - Institute for Studies and Economic Analyses)

  • Sergio de Nardis

    (ISAE - Institute for Studies and Economic Analyses)

  • Alessandro Girardi

    (ISAE - Institute for Studies and Economic Analyses)

Abstract

This paper investigates the pricing-to-market (PTM) behaviour of Italian exporting firms, using quarterly survey data by sector and by region over the period 1999q1-2005q2. A partial equilibrium imperfect competition model provides the structure according to which the orthogonality of structural shocks is derived. Impulse-response analysis shows non-negligible reactions of exportdomestic price margins to unanticipated changes in cost competitiveness and in foreign and domestic demand levels, even though these effects appear to be of a transitory nature. For the period 1999-2001 a typical PTM behaviour emerges, while during the most recent years favourable foreign demand conditions allowed firms to increase their export-domestic price margins in face of a strong deterioration of their cost competitiveness. Macroeconomic implications of the observed PTM behaviour are also discussed.

Suggested Citation

  • Roberto Basile & Sergio de Nardis & Alessandro Girardi, 2006. "Pricing to market of Italian exporting firms," ISAE Working Papers 70, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    • Handle: RePEc:isa:wpaper:70
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sarah Guillou & Stefano Schiavo, 2010. "Export Prices and Increasing World Competition: Evidence from French, German, and Italian Pricing Behaviour," Chapters, in: Jean-Luc Gaffard & Evens Salies (ed.), Innovation, Economic Growth and the Firm, chapter 10, Edward Elgar Publishing.
    2. Strasser, Georg, 2013. "Exchange rate pass-through and credit constraints," Journal of Monetary Economics, Elsevier, vol. 60(1), pages 25-38.
    3. Borin, Alessandro & Lamieri, Marco, 2007. "Estimating Product Quality in International Trade," MPRA Paper 14678, University Library of Munich, Germany.
    4. repec:hal:spmain:info:hdl:2441/9708 is not listed on IDEAS
    5. TESTA, Giuseppina, 2015. "The Effect of the Euro Competition Over Innovation Decisions and Labor Productivity," CELPE Discussion Papers 135, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    6. Jean-Luc Gaffard & Evens Salies (ed.), 2010. "Innovation, Economic Growth and the Firm," Books, Edward Elgar Publishing, number 13101.
    7. repec:hal:wpspec:info:hdl:2441/6123 is not listed on IDEAS
    8. Sarah Guillou & Stefano Schiavo, 2009. "Tarification au marché et variation des marges à l’exportation," SciencePo Working papers Main hal-03459937, HAL.
    9. repec:hal:spmain:info:hdl:2441/6123 is not listed on IDEAS
    10. repec:spo:wpmain:info:hdl:2441/6123 is not listed on IDEAS
    11. repec:spo:wpmain:info:hdl:2441/9708 is not listed on IDEAS
    12. Roberto Basile & Sergio de Nardis & Alessandro Girardi, 2012. "Pricing to market, firm heterogeneity and the role of quality," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(4), pages 595-615, December.
    13. Baiardi, Donatella & Bianchi, Carluccio & Lorenzini, Eleonora, 2015. "The price and income elasticities of the top clothing exporters: Evidence from a panel data analysis," Journal of Asian Economics, Elsevier, vol. 38(C), pages 14-30.
    14. Hélène Erkel-Rousse, 2006. "Les enquêtes de conjoncture : de l'analyse conjoncturelle aux études structurelles," Économie et Statistique, Programme National Persée, vol. 395(1), pages 3-11.
    15. repec:spo:wpecon:info:hdl:2441/6123 is not listed on IDEAS

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    More about this item

    Keywords

    Pricing to market; survey data; panel-VAR models;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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