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Replication data for: Lost in Transit: Product Replacement Bias and Pricing to Market

Version
V0
Resource Type
Dataset
Creator
  • Nakamura, Emi
  • Steinsson, Jón
Publication Date
2012-12-01
Description
  • Abstract

    In the microdata underlying US trade price indexes, 40 percent of products are replaced before a single price change is observed and 70 percent are replaced after two price changes or fewer. A price index that focuses on price changes for identical items may, therefore, miss an important component of price adjustment occurring at the time of product replacements. We provide a model of this "product replacement bias" and quantify its importance using US data. Accounting for product replacement bias, long-run exchange rate "pass-through" is substantially higher than conventional estimates suggest, and the terms of trade are substantially more volatile. (JEL F14, F31)
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/aer.102.7.3277 (Text)
Publications
  • Nakamura, Emi, and Jón Steinsson. “Lost in Transit: Product Replacement Bias and Pricing to Market.” American Economic Review 102, no. 7 (December 2012): 3277–3316. https://doi.org/10.1257/aer.102.7.3277.
    • ID: 10.1257/aer.102.7.3277 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12

Nakamura, Emi; Steinsson, Jón (2012): Replication data for: Lost in Transit: Product Replacement Bias and Pricing to Market. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E112567