THE IMPACT OF A LARGE DEPRECIATION ON THE COST OF LIVING OF RICH AND POOR CONSUMERS
Colicev A. Hoste J. Konings J.
November 2024John Wiley and Sons Inc
International Economic Review
2024#65Issue 41625 - 1656 pp.
Using retailer scanner data, we investigate how a sharp and abrupt depreciation of the exchange rate affects consumers cost of living. We find that the marginal cost of imported goods increased, whereas their retail markups decreased compared to domestic products. There was also a surge in the entry and exit of both foreign and local product varieties post-depreciation. Wealthier consumers, who spend more on imports, are hit harder by higher marginal costs but benefit from reduced markups and increased product diversity, unlike their less affluent counterparts.
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University of Liverpool Management School, United Kingdom
University of Cambridge, United Kingdom
Nazarbayev University Graduate School of Business, Kazakhstan
KU Leuven, Belgium
University of Liverpool Management School
University of Cambridge
Nazarbayev University Graduate School of Business
KU Leuven
10 лет помогаем публиковать статьи Международный издатель
Книга Публикация научной статьи Волощук 2026 Book Publication of a scientific article 2026