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Measuring export prices

Author

Listed:
  • Dale, Charles
  • Bailey, Victor
  • Baxter, Timothy
  • King, Elizabeth

Abstract

This article describes and compares the three most popular indices that are used to measure export prices – Wholesale Price Indices, unit value indices, and export price indices. It includes a brief discussion of the methodology used in constructing the different types of price indices and the relative merits of each, as well as a review of the relevant literature. Two of these price measures, Wholesale Price Indices and unit value indices, are used to analyze the “pass-through” question. A proper measurement of the extent to which exporters pass-through the price effects of changes in exchange rates in the prices they charge their foreign customers is essential to an understanding of (1) export pricing behavior of individual industry sectors when exchange rates fluctuate and (2) the impact of exchange rate changes on a country’s trade balance.

Suggested Citation

  • Dale, Charles & Bailey, Victor & Baxter, Timothy & King, Elizabeth, 1981. "Measuring export prices," MPRA Paper 46342, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:46342
    as

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    References listed on IDEAS

    as
    1. Irving B. Kravis & Robert E. Lipsey, 1971. "Price Competitiveness in World Trade," NBER Books, National Bureau of Economic Research, Inc, number krav71-1, June.
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    3. Robert E. Lipsey, 1963. "Introduction to "Price and Quantity Trends in the Foreign Trade of the United States"," NBER Chapters, in: Price and Quantity Trends in the Foreign Trade of the United States, pages 3-7, National Bureau of Economic Research, Inc.
    4. Stephen P. Magee, 1973. "Currency Contracts, Pass-Through, and Devaluation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(1), pages 303-325.
    5. Robert Summers, 1973. "International Price Comparisons Based Upon Incomplete Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 19(1), pages 1-16, March.
    6. Robert J. Gordon, 1973. "The Use Of Unit Values To Measure Deviations Of Transaction Prices From List Prices," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 19(3), pages 267-269, September.
    7. Kravis, Irving B & Lipsey, Robert E, 1977. "Export Prices and the Transmission of Inflation," American Economic Review, American Economic Association, vol. 67(1), pages 155-163, February.
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    13. Robert E. Lipsey, 1963. "Price and Quantity Trends in the Foreign Trade of the United States," NBER Books, National Bureau of Economic Research, Inc, number lips63-1, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Exports; International trade; Indices;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F10 - International Economics - - Trade - - - General

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