TY - JOUR
T1 - Investment prices and exchange rates
T2 - some basic facts
AU - Burstein, Ariel T.
AU - Rebelo, Sérgio
AU - Neves, João C.
PY - 2004
Y1 - 2004
N2 - 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.
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.
UR - http://www.scopus.com/inward/record.url?scp=24944565744&partnerID=8YFLogxK
U2 - 10.1162/154247604323068005
DO - 10.1162/154247604323068005
M3 - Article
AN - SCOPUS:24944565744
SN - 1542-4774
VL - 2
SP - 302
EP - 309
JO - Journal of the European Economic Association
JF - Journal of the European Economic Association
IS - 2-3
ER -