L81 - Retail and Wholesale Trade; e-Commerce

• Exchange Rates, Retailers, and Importing: Theory and Firm-Level Evidence

  Staff Working Paper 2019-34 Alex Chernoff, Patrick Alexander

  We develop a model with firm heterogeneity in importing and cross-border shopping among consumers. Exchange-rate appreciations lower the cost of imported goods, but also lead to more cross-border shopping; hence, the net impact on aggregate retail prices and sales is ambiguous.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, International topics, Service sector JEL Code(s): F, F1, F10, F14, L, L8, L81