Publications [#292949] of Rafael Dix-Carneiro

Journal Articles

1. Chatterjee, A; Rafael, DC; Vichyanond, J, Multi-product firms and exchange rate fluctuations, American Economic Journal: Economic Policy, vol. 5 no. 2 (May, 2013), pp. 77-110, American Economic Association, ISSN 1945-7731 [Gateway.cgi], [doi]
   (last updated on 2024/04/23)

   Abstract:
   This paper studies the effect of exchange rate shocks on export behavior of multi-product firms. We provide a theoretical framework illustrating how firms adjust their prices, quantities, product scope, and sales distribution across products in the event of exchange rate fluctuations. In response to a real exchange rate depreciation, firms increase markups for all products, but markup increases decline with firm-product-specific marginal costs of production. We find robust evidence for our theoretical predictions using Brazilian customs data containing destination-specific and product-specific export sales and quantities. The sample period covers the years 1997-2006, during which Brazil experienced a series of drastic currency fluctuations.