TY  - JOUR
AU  - Burstein,Ariel
AU  - Neves,Joao C.
AU  - Rebelo,Sergio
TI  - Investment Prices and Exchange Rates: Some Basic Facts
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10238
PY  - 2004
Y2  - January 2004
UR  - http://www.nber.org/papers/w10238
L1  - http://www.nber.org/papers/w10238.pdf
N1  - Author contact info:
Ariel Burstein
Department of Economics
Bunche Hall 8365
Box 951477
UCLA
Los Angeles, CA 90095-1477
Tel: 310/206-6732
Fax: 310/825-9528
E-Mail: arielb@econ.ucla.edu

Sergio Rebelo
Northwestern University
Kellogg School of Management
Department of Finance
Leverone Hall
Evanston, IL  60208-2001
Tel: 847/467-2329
Fax: 847/491-5719
E-Mail: s-rebelo@northwestern.edu
AB  - This paper documents four basic facts about investment goods and investment prices. First, investment has a very significant nontradable component in the form of construction services. Second, distributions services (wholesaling, retailing, and transportation) are much less important for investment than for consumption. Third, the import content of investment is much larger than that of consumption. Finally, in the aftermath of three large devaluations, the rate of exchange rate pass-through is, perhaps not surprisingly, highest for imported equipment and lowest for construction services.
ER  -