Lost in Transit: Product Replacement Bias and Pricing to Market

PricingMonetary
Written By Rowdy Ferret Design

Lost in Transit: Product Replacement Bias and Pricing to Market (with Emi Nakamura)

American Economic Review, 102(7), 3277-3316, December 2012.

40% of products in U.S. micro price data are replaced before they have a single price change. Price indexes based on price changes for identical items will thus suffer from “product replacement bias.” Correcting for this bias substantially increases exchange rate pass-through.

Rowdy Ferret Design

Oakland based web designer and developer.

Loves long walks in the woods and barbeque.

http://rowdyferretdesign.com
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