Francois, J;
Manchin, M;
(2019)
Market power in distribution and pass-through for consumers and producers.
Review of International Economics
, 27
(1)
pp. 290-312.
10.1111/roie.12376.
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Abstract
We examine the differential pass-through of import prices into consumer and producer prices. We develop a framework with distribution costs and distribution market power. We then examine pass-through from import prices to consumer and producer prices in the euro area using the U.S. import price as instrument. We find that pass-through rates to producer prices are more sensitive to changes in distribution margins than pass-through to consumer prices. Furthermore, only a portion of import price changes translate into domestic price changes limiting potential consumer benefits from tariff liberalization, with market power in distribution services being one important factor reducing pass-through.
| Type: | Article |
|---|---|
| Title: | Market power in distribution and pass-through for consumers and producers |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1111/roie.12376 |
| Publisher version: | https://doi.org/10.1111/roie.12376 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10060318 |
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