Exporters' Heterogeneous Productivities, Liquidity Constraint, and the Dynamics of International Relative Prices

Research Project

Project/Area Number	24730170
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Multi-year Fund
Research Field	Economic theory
Research Institution	Sophia University
Principal Investigator	KOSAKA Michiru 上智大学, 国際教養学部, 准教授 (50612082)
Project Period (FY)	2012-04-01 – 2016-03-31
Project Status	Completed (Fiscal Year 2015)
Budget Amount *help	¥2,210,000 (Direct Cost: ¥1,700,000、Indirect Cost: ¥510,000) Fiscal Year 2014: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000) Fiscal Year 2013: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000) Fiscal Year 2012: ¥390,000 (Direct Cost: ¥300,000、Indirect Cost: ¥90,000)
Keywords	国際相対価格 / 為替レート / 輸出企業 / 金融制約 / 流動性制約
Outline of Final Research Achievements	This research project studies the effects of the financial constraints of heterogeneous exporting firms on their price-setting behaviors and sensitivities to exchange rates in order to understand the behaviors of international relative prices. Using a model that assumes endogenous markups, I find that the exchange rate pass-through is higher when firms face greater financial constraints. Using a dynamic stochastic general equilibrium (DSGE) model, I also further analyze how the level of integration of financial markets affects the transmissions of exogenous economic shocks.