International Shocks and Domestic Prices: How Large Are Strategic Complementarities?
---- Acknowledgments ----
Access to confidential data was possible while Jozef Konings was affiliated to the National Bank of Belgium. Most of this research was carried out during that period. We thank Ilke Van Beveren for all her help with the concordances of the product codes; and Emmanuel Dhyne and Catherine Fuss of the National Bank of Belgium for data clarifications and suggestions. We thank Ariel Burstein and Gita Gopinath for insightful discussions, and David Atkin, Andy Bernard, Arnaud Costinot, Jan de Loecker, Linda Goldberg, Gene Grossman, Anna Kovner, Ben Mandel, Dmitry Mukhin, Peter Neary, Ezra Oberfield, Gianmarco Ottaviano, Jacques Thisse, David Weinstein, and seminar and conference participants at multiple venues for insightful comments. Sungki Hong, Preston Mui, and Tyler Bodine-Smith provided excellent research assistance. The views expressed in this paper are those of the authors and do not necessarily represent those of the Federal Reserve Bank of New York, the Federal Reserve System, the National Bank of Belgium, or the National Bureau of Economic Research.