| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w12731 |
| 来源ID | Working Paper 12731 |
| Pricing to Habits and the Law of One Price | |
| Morten Ravn; Stephanie Schmitt-Grohe; Martin Uribe | |
| 发表日期 | 2006-12-01 |
| 出版年 | 2006 |
| 语种 | 英语 |
| 摘要 | This paper proposes a novel international transmission mechanism based on the assumption of deep habits. The term deep habits stands for a preference specification according to which consumers form habits on a good-by-good basis. Under deep habits, firms face more elastic demand functions in markets where nonhabitual demand is high relative to habitual demand, creating an incentive to price discriminate. We refer to this type of price discrimination as pricing to habits. In the presence of pricing to habits, innovations to domestic aggregate demand induce a decline in markups in the domestic country but not abroad, leading to a departure from the law of one price. In this way, the proposed pricing-to-habit mechanism can explain the observation that prices of the same good across countries, expressed in the same currency, vary over the business cycle. Furthermore, it can account for the empirical fact that in response to a positive domestic demand shock, such as an increase in government spending, the real exchange rate depreciates, domestic consumption expands, and the trade balance deteriorates. |
| 主题 | Macroeconomics ; Business Cycles ; International Economics ; International Macroeconomics |
| URL | https://www.nber.org/papers/w12731 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/570394 |
| 推荐引用方式 GB/T 7714 | Morten Ravn,Stephanie Schmitt-Grohe,Martin Uribe. Pricing to Habits and the Law of One Price. 2006. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w12731.pdf（108KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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