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Author: Bo-Young Choi Publisher: ISBN: 9781303537967 Category : Languages : en Pages :
Book Description
In Chapter 1, I show empirically that the presence of retailers can reduce gains from trade under certain market structures. Theory suggests that retailers' buyer power (monopsony power), via negotiating with foreign suppliers, reduces gains from trade liberalization. Buyer power allows retailers to absorb the decline in trade costs in the form of a higher markup, rather than passing it on to consumers. I find that a 10% reduction in tariff rates causes US domestic retail prices to decline by 4.3% on average for goods which are subject to buyer power among retailers, versus 7.2% for goods not subject to buyer power. Furthermore, I show that for products that are subject to buyer power, the trade cost reduction can be completely absorbed by retailers' markup adjustment when the concentration in the retail sector exceeds a certain threshold. For products that are not subject to buyer power, on the other hand, lower tariff rates lead to lower consumer prices at any level of concentration in the retail sector. Chapter 2 studies the differential effect of trade liberalization among 23 Chinese provinces during years 2001-2003. During these years, China lowered its tariffs substantially as it joined the World Trade Organization (WTO). The empirical results suggest that consumer welfare gains from trade are not distributed equally. I find that provinces which are more exposed to globalization than other provinces tend to pass through more of the decline in tariff rates to consumer prices. Provinces with higher FDI and imports compared to Regional Domestic Product (RDP) pass through more of the decline in tariffs to consumer prices, and coastal provinces pass through more of the reduction in tariffs than inland provinces. Also, tariff pass-through is lower on average when Chinese state owned enterprises import than when foreign owned enterprises import. I further show that pass-through increases when provinces become more exposed to globalization. This effect is pronounced for Chinese imports through state owned firms. Chapter 3 answers the question why estimates of tariff rate pass-through (TRPT) and exchange rate pass-through (ERPT) usually differ in empirical studies. I argue that estimates of ERPT are lower than TRPT because exchange rate changes are perceived as transitory while tariff changes are viewed as permanent by economic agents. I adopt Rodriguez-Lopez (2006) and examine how pass-through differs when depreciation is perceived as temporary or permanent. The central result is reached by manipulating the hypothesized persistence of the exchange rate Markov process. A temporary change in the exchange rate leads to an ERPT that is one-half the size of ERPT that would have occurred under a permanent shock.
Author: Bo-Young Choi Publisher: ISBN: 9781303537967 Category : Languages : en Pages :
Book Description
In Chapter 1, I show empirically that the presence of retailers can reduce gains from trade under certain market structures. Theory suggests that retailers' buyer power (monopsony power), via negotiating with foreign suppliers, reduces gains from trade liberalization. Buyer power allows retailers to absorb the decline in trade costs in the form of a higher markup, rather than passing it on to consumers. I find that a 10% reduction in tariff rates causes US domestic retail prices to decline by 4.3% on average for goods which are subject to buyer power among retailers, versus 7.2% for goods not subject to buyer power. Furthermore, I show that for products that are subject to buyer power, the trade cost reduction can be completely absorbed by retailers' markup adjustment when the concentration in the retail sector exceeds a certain threshold. For products that are not subject to buyer power, on the other hand, lower tariff rates lead to lower consumer prices at any level of concentration in the retail sector. Chapter 2 studies the differential effect of trade liberalization among 23 Chinese provinces during years 2001-2003. During these years, China lowered its tariffs substantially as it joined the World Trade Organization (WTO). The empirical results suggest that consumer welfare gains from trade are not distributed equally. I find that provinces which are more exposed to globalization than other provinces tend to pass through more of the decline in tariff rates to consumer prices. Provinces with higher FDI and imports compared to Regional Domestic Product (RDP) pass through more of the decline in tariffs to consumer prices, and coastal provinces pass through more of the reduction in tariffs than inland provinces. Also, tariff pass-through is lower on average when Chinese state owned enterprises import than when foreign owned enterprises import. I further show that pass-through increases when provinces become more exposed to globalization. This effect is pronounced for Chinese imports through state owned firms. Chapter 3 answers the question why estimates of tariff rate pass-through (TRPT) and exchange rate pass-through (ERPT) usually differ in empirical studies. I argue that estimates of ERPT are lower than TRPT because exchange rate changes are perceived as transitory while tariff changes are viewed as permanent by economic agents. I adopt Rodriguez-Lopez (2006) and examine how pass-through differs when depreciation is perceived as temporary or permanent. The central result is reached by manipulating the hypothesized persistence of the exchange rate Markov process. A temporary change in the exchange rate leads to an ERPT that is one-half the size of ERPT that would have occurred under a permanent shock.
Author: Yahia Abuhashem Publisher: ISBN: 9781392063101 Category : Competition Languages : en Pages : 208
Book Description
This dissertation includes three chapters that expand upon the discussion on the role of market structure and competition on the extent of pass-through of exchange-rate and tariff-rate movements in a multi-country world. The first chapter extends Naknoi (2015) model to incorporate the response of import prices to cost shocks related to exogenous movements in tariff-rates as a variable rate across products and trading partners, applied to own and competing exporters' export prices. Empirically, I make the contribution of estimating the "multilateral" own-ERPT and cross-ERPT to import prices in the U.S., accounting for strategic interactions between competing exporters in a sector when estimating the multilateral-ERPT elasticity. Interestingly, the coefficients for the cross exchange-rate and tariff-rate of competing exporters are found to be statistically significant, indicating a strong predictive power of the cross-ERPT and cross-ERPT elasticity when added to the regression. In addition, I estimate the extent of aggregate Pricing-to-Market (PTM) for each of the top 20 exporters to the U.S. from the lens of bilateral and cross ERPT and TRPT. Results continue to further assert the strong predictive power of the cross-ERPT and cross-ERPT on exporters' PTM behaviors. Motivated by Mallik and Marques (2012), the second chapter extends the Auer and Schoenle (2016) model by assuming that tariff-rates, in addition to exchange-rates, identify cost shocks to exporters' marginal costs. Empirically, this chapter attempts to examine whether the use of data on shocks to the exchange-rate and tariff-rate of competing exporters can be used to identify changes in competitor exporters' Local-Currency-Price (LCP), and thus establish Auer & Schoenle (2016) second stylized fact that the rate at which a firm reacts to competitor prices is hump-shaped in market share. I argue that the cross-cost pass-through channel, combining the exogenous shocks to the exchange-rate and tariff- rate of competing exporters is insightfully and conceptually equivalent to the price complementaries channel developed in my extension of Auer and Schoenle (2016). Empirical results suggest that adjusting the bilateral exchange-rate fluctuations of competing exporters to changes in their tariff-rate, the rate at which an exporter reacts to these changes is expected to be a hump-shape in market share. Finally, the third chapter builds upon the theoretical model developed in Bergin and Feenstra (2009), and extends it test how the rise in China's share of imports to the U.S., as well as China's adoption of a more flexible exchange rate regime has affected and possibly altered the competitive environment in the U.S. import market during the last decade, and consequently changed the extent of ERPT. In their theoretical model, Bergin and Feenstra (2009) neglect the power of tariffs in influencing the LCP of imports. Their theoretical approach to modelling LCP's implicitly assumes that tariffs are either non-existent or are similar for all trading partners. The extended theoretical model developed in Chapter 3 differs in its inclusion of tariff-rates as a variable rate across products and trading partners when calculating LCP's of imports. Empirically, results confirm Bergin and Feenstra (2009) prediction that the pass-through to the multilateral exchange-rate would be expected to rise as a result of China adopting a more flexible exchange-rate regime, while continuing to occupy larger market share of U.S. imports.
Author: Yifan Li Publisher: ISBN: Category : Languages : en Pages :
Book Description
"This thesis investigates the impacts of changes in the trading environment on the behavior and performance of exportingfirms and of firms that import intermediate inputs. The thesis consists of three essays. Each essay contributesboth a theoretical development and an empirical analysis, using large scaled micro data from multiple sources. Thefirst essay studies how increased import penetration of inputs affects firms’ optimal mark-up and industry concentration.A theoretical model is developed to show how firms, operating under monopolistic competition, may choose toincur a fixed cost of foreign sourcing in order to replace some domestically sourced input with more efficient foreignsubstitutes. It is shown that changes in variable trade costs not only affect firms’ importing decision but also thenumber and identity of firms in the market and ultimately markups and market structure. We find evidence of a positiverelationship between imported input penetration and markup: the average markup rises when import penetrationincreases following a reduction in trade costs. The second essay develops a two-stage theoretical model to investigatehow firms’ decision on the number of varieties to export (i.e., their export scope) depends on exchange rate volatilityand on other characteristics of the destination countries. In the model, in the first stage, multi-product firms decide ontheir optimal product scope (the number of varieties to be produced for exporting), incurring fixed investment costs.In the second stage, they decide on the export scope for each destination country, based on country-specific tradecosts and expectation of idiosyncratic exchange rate shocks. Firms reduce their export scope to destination countriesthat suffer negative demand shocks, but they cannot increase their export scope beyond the production scope that theyhave chosen in the first stage. Using Chinese customs transaction data, we are able to provide empirical evidence thatsupports the predictions of our theoretical model. The third essay studies the effect of foreign tariff reductions on the adjustment of average quality and export scope of multi-product exporting firms, using China’s firm-level microdata and highly disaggregated customs data from 2000 to 2006. We find that in response to tariff cuts in destinationcountries, exporting firms upgrade product quality and adjust export scope. Our finding provides a novel explanationof what the phenomenon called incomplete tariff pass-through. A fall in the tariff rate seems to be associated with anincrease in the tariff-inclusive prices, but this is because the price data has not been adjusted to reflect the increase inproduct quality"--
Author: Byoung-Ky Chang Publisher: ISBN: Category : Languages : en Pages : 224
Book Description
In the last essay (chapter IV), I test the strategic behaviors between exporting firms with simultaneous estimation techniques (three stage least squares). Exchange rate pass-through is estimated, and the effect of the rival exchange rate is emphasized. Also, I demonstrate the problem associated with tests which use trade-weighted exchange rate. Most importantly, this research highlights the importance of market structure in exchange rate pass-through studies.
Author: Alberto Cavallo Publisher: International Monetary Fund ISBN: 1513518380 Category : Business & Economics Languages : en Pages : 37
Book Description
We use micro data collected at the border and at retailers to characterize the effects brought by recent changes in US trade policy - particularly the tariffs placed on imports from China - on importers, consumers, and exporters. We start by documenting that the tariffs were almost fully passed through to total prices paid by importers, suggesting the tariffs' incidence has fallen largely on the United States. Since we estimate the response of prices to exchange rates to be far more muted, the recent depreciation of the Chinese renminbi is unlikely to alter this conclusion. Next, using product-level data from several large multi-national retailers, we demonstrate that the impact of the tariffs on retail prices is more mixed. Some affected product categories have seen sharp price increases, but the difference between affected and unaffected products is generally quite modest, suggesting that retail margins have fallen. These retailers' imports increased after the initial announcement of possible tariffs, but before their full implementation, so the intermediate passthrough of tariffs to their prices may not persist. Finally, in contrast to the case of foreign exporters facing US tariffs, we show that US exporters lowered their prices on goods subjected to foreign retaliatory tariffs compared to exports of non-targeted goods.
Author: American Bar Association. House of Delegates Publisher: American Bar Association ISBN: 9781590318737 Category : Law Languages : en Pages : 216
Book Description
The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.
Author: Bo-Young Choi
Author: Bo-Young Choi
Author: Yahia Abuhashem
Author: Wei Chen
Author: Zhi Yu
Author: Yifan Li
Author: Byoung-Ky Chang
Author: Victor Iwuagwu Oguledo
Author: Alberto Cavallo
Author: Nicoleta Iliescu
Author: American Bar Association. House of Delegates