Pricing to market of Italian exporting firms

Roberto Basile (), Sergio de Nardis and Alessandro Girardi

No 70, ISAE Working Papers from ISTAT - Italian National Institute of Statistics - (Rome, ITALY)

Abstract: This paper investigates the pricing-to-market (PTM) behaviour of Italian exporting firms, using quarterly survey data by sector and by region over the period 1999q1-2005q2. A partial equilibrium imperfect competition model provides the structure according to which the orthogonality of structural shocks is derived. Impulse-response analysis shows non-negligible reactions of exportdomestic price margins to unanticipated changes in cost competitiveness and in foreign and domestic demand levels, even though these effects appear to be of a transitory nature. For the period 1999-2001 a typical PTM behaviour emerges, while during the most recent years favourable foreign demand conditions allowed firms to increase their export-domestic price margins in face of a strong deterioration of their cost competitiveness. Macroeconomic implications of the observed PTM behaviour are also discussed.

Keywords: Pricing to market; survey data; panel-VAR models (search for similar items in EconPapers)
JEL-codes: E30 F31 F41 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2006-06
New Economics Papers: this item is included in nep-cba, nep-eec and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (13)

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Journal Article: Pricing to market of Italian exporting firms (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:isa:wpaper:70

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