全球智库信息集成服务系统(G2TT): DP16869 The Impact of a Large Depreciation on the Cost of Living of Rich and Poor Consumers

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP16869
	DP16869 The Impact of a Large Depreciation on the Cost of Living of Rich and Poor Consumers
	Anatoli Colicev; Joris Hoste; Jozef Konings
发表日期	2022-01-09
出版年	2022
语种	英语
摘要	This paper shows that a large exchange rate depreciation affects the cost of living of rich and poor consumers differently. Interestingly, we show that rich consumers are less affected by the depreciation. This is because the depreciation introduces a large variety of products to the market which are more accessible to rich than to poor consumers. We exploit scanner data tracking consumer purchases before and after the large depreciation of the Kazakh Tenge, when it switched from a fixed to a floating exchange rate regime, in August 2015. We use an event study design to show that marginal costs increase more for foreign products than for local products after the depreciation. However, the retail margins on foreign products decrease by more than the retail margins on local products. Thus, the retailer limits relative price movement by adjusting its margins, which helps explain the low sensitivity of domestic absorption to changes in relative border prices. To examine the cost-of-living effect we decompose it into a cost, a retail markup, a substitution and a variety effect. As richer consumers spend, on average, more on foreign varieties, we find that they are disproportionally affected by the cost effect. However, lower retail markups after the shock offset this relative cost increase. Since richer consumers benefit more from changes in product variety, their cost of living increases by less after the depreciation.
主题	International Trade and Regional Economics
关键词	Exchange rate pass through Depreciation Scanner data
URL	https://cepr.org/publications/dp16869
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/545797
推荐引用方式 GB/T 7714	Anatoli Colicev,Joris Hoste,Jozef Konings. DP16869 The Impact of a Large Depreciation on the Cost of Living of Rich and Poor Consumers. 2022.