Lost in transit: Product replacement bias and pricing to market

American Economic Review

Volumn 102, Issue 7, 2012, Pages 3277-3316

  Nakamura, Emi ^a   Steinsson, Jón ^a  

^a Och Spine at New York Presbyterian Hospitals   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84866515908     PISSN: 00028282     EISSN: None     Source Type: Journal    
DOI: 10.1257/aer.102.7.3277     Document Type: Article

References (77)

1. Abel, Andrew B., and Olivier Jean Blanchard. 1988. "Investment and Sales: Some Empirical Evidence." In Dynamic Econometric Modeling: Proceedings of the Third International Symposium in Economic Theory and Econometrics, edited by William A. Barnett, Ernst R. Berndt, and Halbert White, 269-96. New York: Cambridge University Press.
2. Abraham, Katharine G., John S. Greenlees, and Brent R. Moulton. 1998. "Working to Improve the Consumer Price Index." Journal of Economic Perspectives 12 (1): 27-36.
3. Alterman, William. 1991. "Price Trends in U.S. Trade: New Data, New Insights." In International Economic Transactions: Issues in Measurement and Empirical Research, edited by Peter Hooper and J. David Richardson, 109-39. Chicago: University of Chicago Press.
4. Armknecht, Paul A., and Donald Weyback. 1989. "Adjustments for Quality Change in the U.S. Consumer Price Index." Journal of Official Statistics 5 (2): 107-23.
5. Atkeson, Andrew, and Ariel Burstein. 2008. "Pricing-to-Market, Trade Costs, and International Relative Prices." American Economic Review 98 (5): 1998-2031.
6. Auer, Raphael, and Thomas Chaney. 2009. "Exchange Rate Pass-Through in a Competitive Model of Pricing-to-Market." Journal of Money, Credit, and Banking 41 (1): 151-75.
7. Barro, Robert J. 1977. "Long-Term Contracting, Sticky Prices, and Monetary Policy." Journal of Monetary Economics 3 (3): 305-16.
8. Berger, David, Jon Faust, John H. Rogers, and Kai Steverson. 2012. "Border Prices and Retail Prices." Journal of International Economics 88 (1): 62-73.
9. Bergin, Paul R., and Robert C. Feenstra. 2001. "Pricing-to-Market, Staggered Contracts, and Real Exchange Rate Persistence." Journal of International Economics 54 (2): 333-59.
10. Bils, Mark. 2009. "Do Higher Prices for New Goods Reflect Quality Growth or Inflation?" Quarterly Journal of Economics 124 (2): 637-75.
11. Bils, Mark, and Peter J. Klenow. 2001. "Quantifying Quality Growth." American Economic Review 91 (4): 1006-30.
12. Bils, Mark, Peter J. Klenow, and Benjamin A. Malin. 2012. "Reset Price Inflation and the Impact of Monetary Policy Shocks." American Economic Review 102 (6): 2798-825.
13. Board of Governors of the Federal Reserve System. 1982-2007. "Foreign Exchange Rates." http://www.federalreserve.gov/releases/h10/ hist (accessed 2008).
14. Boskin, Michael J., Ellen R. Dulberger, Robert J. Gordon, Zvi Griliches, and Dale W. Jorgenson. 1996. "Toward a More Accurate Measure of the Cost of Living." Final Report to the Senate Finance Committee, December 4.
15. Bouakez, Hafedh, and Nooman Rebei. 2008. "Has Exchange Rate Pass-Through Really Declined? Evidence from Canada." Journal of International Economics 75 (2): 249-67.
16. Broda, Christian, and David E. Weinstein. 2006. "Globalization and the Gains from Variety." Quarterly Journal of Economics 121 (2): 541-85.
17. Bureau of Economic Analysis. 1982-2007. "National Income and Product Accounts." United States Department of Commerce (accessed 2008).
18. Bureau of Labor Statistics. 1994-2007. "International Prices Program Micro-Data 1994-2007." United States Department of Labor (accessed 2008-2011).
19. Burstein, Ariel, Martin Eichenbaum, and Sergio Rebelo. 2005. "Large Devaluations and the Real Exchange Rate." Journal of Political Economy 113 (4): 742-84.
20. Campa, Jose Manuel, and Linda S. Goldberg. 2005. "Exchange Rate Pass-Through into Import Prices." Review of Economics and Statistics 87 (4): 679-90.
21. Carlton, Dennis W. 1986. "The Rigidity of Prices." American Economic Review 76 (4): 637-58.
22. Clausing, Kimberly A. 2001. "The Behavior of Intrafirm Trade Prices in U.S. International Price Data." Unpublished.
23. Corsetti, Giancarlo, and Luca Dedola. 2005. "A Macroeconomic Model of International Price Discrimination." Journal of International Economics 67 (1): 129-55.
24. Corsetti, Giancarlo, Luca Dedola, and Sylvain Leduc. 2008. "High Exchange-Rate Volatility and Low Pass-Through." Journal of Monetary Economics 55 (6): 1113-28.
25. Court, Andrew. 1939. "Hedonic Price Indexes with Automobile Examples." In The Dynamics of Automobile Demand, 99-117. New York: General Motors Corporation.
26. Diewert, Erwin, and Alice O. Nakamura. 2010. "Bias Due to Input Source Substitutions: Can It Be Measured?" Unpublished.
27. Drozd, Lukasz A., and Jaromir B. Nosal. 2010. "Pricing-to-Market in Business Cycle Models." Unpublished.
28. Drozd, Lukasz A., and Jaromir B. Nosal. 2012. "Understanding International Prices: Customers as Capital." American Economic Review 102 (1): 364-95.
29. Erceg, Christopher J., Luca Guerrieri, and Christopher Gust. 2006. "SIGMA: A New Open Economy Model for Policy Analysis." International Journal of Central Banking 2 (1): 1-50.
30. Erickson, Tim, and Ariel Pakes. 2011. "An Experimental Component Index for the CPI: From Annual Computer Data to Monthly Data on Other Goods." American Economic Review 101 (5): 1707-38.
31. Feenstra, Robert C. 1994. "New Product Varieties and the Measurement of International Prices." American Economic Review 84 (1): 157-77.
32. Feenstra, Robert C., and Erwin W. Diewert. 2000. "Imputation and Price Indexes: Theory and Evidence from the International Price Program." Unpublished.
33. Gagnon, Joseph E., and Michael M. Knetter. 1995. "Markup Adjustment and Exchange Rate Fluctuations: Evidence from Panel Data on Automobile Exports." Journal of International Money and Finance 14 (2): 289-310.
34. Ghironi, Fabio, and Marc J. Melitz. 2005. "International Trade and Macroeconomic Dynamics with Heterogeneous Firms." Quarterly Journal of Economics 120 (3): 865-915.
35. Goldberg, Pinelopi Koujianou, Amit Kumar Khandelwal, Nina Pavcnik, and Petia Topalova. 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India." Quarterly Journal of Economics 125 (4): 1727-67.
36. Goldberg, Pinelopi Koujianou, and Michael M. Knetter. 1997. "Goods Prices and Exchange Rates: What Have We Learned?" Journal of Economic Literature 35 (3): 1243-72.
37. Gopinath, Gita, and Oleg Itskhoki. 2010a. "Frequency of Price Adjustment and Pass-Through." Quarterly Journal of Economics 125 (2): 675-727.
38. Gopinath, Gita, and Oleg Itskhoki. 2010b. "In Search of Real Rigidities." In NBER Macroeconomics Annual, edited by Daron Acemoglu and Michael Woodford. Chicago: University of Chicago Press.
39. Gopinath, Gita, Oleg Itskhoki, and Roberto Rigobon. 2007. "Currency Choice and Exchange Rate Pass-Through." National Bureau of Economic Research Working Paper 13432.
40. Gopinath, Gita, Oleg Itskhoki, and Roberto Rigobon. 2010. "Currency Choice and Exchange Rate Pass-Through." American Economic Review 100 (1): 304-36.
41. Gopinath, Gita, and Roberto Rigobon. 2008. "Sticky Borders." Quarterly Journal of Economics 123 (2): 531-75.
42. Greenlees, John S., and Robert McClelland. 2011. "Does Quality Adjustment Matter for Technologically Stable Products? An Application to the CPI for Food." American Economic Review 101 (3): 200-05.
43. Griliches, Zvi. 1961. "Hedonic Price Indexes for Automobiles: An Econometric Analysis of Quality Change." In The Price Statistics of the Federal Government, edited by the Price Statistics Review Committee, 173-96. Chicago: National Bureau of Economic Research.
44. Hausman, Jerry. 2003. "Sources of Bias and Solutions to Bias in the Consumer Price Index." Journal of Economic Perspectives 17 (1): 23-44.
45. Hellerstein, Rebecca, Deirdre Daly, and Christina Marsh. 2006. "Have U.S. Import Prices Become Less Responsive to Changes in the Dollar?" Federal Reserve Bank of New York Current Issues in Economics and Finance 12 (6): 1-7.
46. Hobijn, Bart. 2002. "On Both Sides of the Quality Bias in Price Indexes." Federal Reserve Bank of New York, Staff Report 157.
47. Houseman, Susan. 2007. "Outsourcing, Offshoring, and Productivity Measurement in United States Manufacturing." International Labour Review 146 (1-2): 61-80.
48. Houseman, Susan, Christopher Kurz, Paul Lengermann, and Benjamin Mandel. 2011. "Offshoring Bias in U.S. Manufacturing." Journal of Economic Perspectives 25 (2): 111-32.
49. International Monetary Fund. 2008. "International Financial Statistics." (accessed 2008).
50. Johansen, Soren. 1995. Likelihood-Based Inference in Cointegrated Vector Autoregressive Models. New York: Oxford University Press.
51. Kimball, Miles S. 1995. "The Quantitative Analytics of the Basic Neomonetarist Model." Journal of Money, Credit, and Banking 27 (4): 1241-77.
52. Knetter, Michael M. 1989. "Price Discrimination by U.S. and German Exporters." American Economic Review 79 (1): 198-210.
53. Lancaster, Tony. 1992. The Econometric Analysis of Transition Data. New York: Cambridge University Press.
54. Liegey, Paul R., Jr. 1993. "Adjusting Apparel Indexes in the Consumer Price Index for Quality Differences." In Price Measurements and their Uses, edited by Murray F. Foss, Marilyn E. Manser, and Allan H. Young, 209-26. Chicago: University of Chicago Press.
55. Liu, Jingchen, Xiao-Li Meng, Chih-nan Chen, and Margarita Alegria. 2009. "Statistics Can Lie But Can Also Correct for Lies: Reducing Response Bias in NLAAS via Baysian Imputation." Unpublished.
56. Mandel, Michael. 2007. "The Real Cost of Offshoring." Business Week, June 18.
57. Mandel, Michael. 2009. "Growth: Why the Stats Are Misleading." Business Week, June 3.
58. Marazzi, Mario, and Nathan Sheets. 2007. "Declining Exchange Rate Pass-Through to U.S. Import Prices: The Potential Role of Global Factors." Journal of International Money and Finance 26 (6): 924-47.
59. Marazzi, Mario, Nathan Sheets, Robert J. Vigfusson, Jon Faust, Joseph Gagnon, Jaime Marquez, Robert F. Martin, Trevor Reeve, and John Rogers. 2005. "Exchange Rate Pass-Through to U.S. Import Prices: Some New Evidence." Board of Governors of the Federal Reserve System (U.S.) International Finance Discussion Paper 833.
60. Marston, Richard C. 1990. "Pricing to Market in Japanese Manufacturing." Journal of International Economics 29 (3-4): 217-36.
61. Moulton, Brent R., and Karin E. Moses. 1997. "Addressing the Quality Change Issue in the Consumer Price Index." Brookings Papers on Economic Activity 1997 (1): 305-49.
62. Nakamura, Emi, and Jón Steinsson. 2008. "Five Facts about Prices: A Reevaluation of Menu Cost Models." Quarterly Journal of Economics 123 (4): 1415-64.
63. Nakamura, Emi, and Jón Steinsson. 2011. "Price Setting in Forward-Looking Customer Markets." Journal of Monetary Economics 58 (3): 220-33.
64. Nakamura, Emi, and Jón Steinsson. 2012. "Lost in Transit: Product Replacement Bias and Pricing to Market: Dataset." American Economic Review. http://dx.doi.org/10.1257/aer.102.7.3277.
65. Neiman, Brent. 2010. "Stickiness, Synchronization, and Pass-through in Intrafirm Trade Prices." Journal of Monetary Economics 57 (3): 295-308.
66. Nordhaus, William D. 1998. "Quality Change in Price Indexes." Journal of Economic Perspectives 12 (1): 59-68.
67. Olivei, Giovanni P. 2002. "Exchange Rates and the Prices of Manufacturing Products Imported into the United States." Federal Reserve Bank of Boston New England Economic Review 2002: 3-18.
68. Pakes, Ariel. 2003. "A Reconsideration of Hedonic Price Indexes with an Application to PC's." American Economic Review 93 (5): 1578-96.
69. Reinsdorf, Marshall. 1993. "The Effect of Outlet Price Differentials on the U.S. Consumer Price Index." In Price Measurements and Their Uses, edited by Murray F. Foss, Marilyn E. Manser, and Allan H. Young, 227-54. Chicago: University of Chicago Press.
70. Reinsdorf, Marshall B., Paul Liegey, and Kenneth Stewart. 1996. "New Ways of Handling Quality Change in the US Consumer Price Index." Bureau of Labor Statistics Economic Working Paper 276.
71. Rodriguez-Lopez, Jose Antonio. 2008. "Prices and Exchange Rates: A Theory of Disconnection." Review of Economic Studies 78 (3): 1135-77.
72. Rogers, John H. 2006. "Exchange Rate Pass-Through to U.S. Import Prices: A Look Under the Hood." Staff Presentation, Board of Governors of the Federal Reserve System.
73. Rotemberg, Julio J. 2005. "Customer Anger at Price Increases, Changes in the Frequency of Price Adjustment and Monetary Policy." Journal of Monetary Economics 52 (4): 829-52.
74. Stigler, George J., Dorothy S. Brady, Edward F. Denison, Irving B. Kravis, Philip J. McCarthy, Albert Rees, Richard Ruggles, and Boris C. Swerling. 1961. The Price Statistics of the Federal Government. New York: National Bureau of Economic Research.
75. Triplett, Jack E. 1997. "Measuring Consumption: The Post-1973 Slowdown and the Research Issues." Federal Reserve Bank of St. Louis Review 79 (3): 9-42.
76. United States Department of Labor. 2005. IPP Data Collection Manual. Washington, DC: Government Printing Office.
77. Woodford, Mike. 2003. Interest and Prices. Princeton, NJ: Princeton University Press.