SSE/EFI Working Paper Series in Economics and Finance
Annika Alexius and Anders Vredin
Pricing-to-Market in Swedish Exports
Abstract: In this paper fluctuations in prices of Swedish exports to
five countries are investigated in order to test whether there are
systematic differences between prices to different markets and whether
relative export prices are systematically affected by macroeconomic
conditions in destination countries. Simple correlations suggest that
relative export prices are related to real exchange rates, but also to
nominal exchange rates. Formal tests, based on an error-correction model,
indicate that the deviations from no pricing-to-market and neutrality of
money are quite common and persistent. Over a sample of 15 years, long run
monetary neutrality is rejected in almost half of the cases. In most cases,
the degree of pricing-to-market is also affected by aggregate demand
(unemployment) in export markets.
Keywords: export prices; exchange rates; pricing-to-market; neutrality of money; exchange-rate pass-through; (follow links to similar papers)
JEL-Codes: F14; F31; F41; (follow links to similar papers)
40 pages, December 1996
- This paper is forthcoming as:
Alexius, Annika and Anders Vredin, 'Pricing-to-Market in Swedish Exports', Scandinavian Journal of Economics.
Questions (including download problems) about the papers in this series should be directed to Helena Lundin ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom