TY  - JOUR
AU  - Katseli,Louka T.
AU  - Marion,Nancy Peregrim
TI  - Adjustment to Variations in Imported Input Prices: The Role of Economic Structure
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 501
PY  - 1980
Y2  - July 1980
UR  - http://www.nber.org/papers/w0501
L1  - http://www.nber.org/papers/w0501.pdf
N1  - Author contact info:
Louka T. Katseli

Nancy Marion
Department of Economics
Dartmouth College
Hanover, NH  03755
E-Mail: Nancy.P.Marion@Dartmouth.EDU
AB  - This paper introduces an imported input into a model of art open economy with developed financial markets, a flexible exchange rate, and some degree of market power on the export side. The model is designed to investigate the impact of an increase in imported input prices on the exchange rate, domestic interest rate, income and nontraded-goods prices. The analysis reveals that changes in various structural parameters, such as the degree of market power or the extent of demand-side openness" or "financial openness," alter the transmission of foreign price disturbances to the domestic economy.
ER  -