JOURNAL ARTICLE
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Außenwirtschaftliche Persistenzen und Wechselkurselastizitäten
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 109 (1989), Iss. 4 : pp. 585–602
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Fuhrmann, Wilfried
Abstract
The variability of the exchange rate elasticity of imports and import-prices due to specific costs of entry and maintenance of foreign firms in domestic markets are shown. Such sunk-costs, framed in an extended Cournot-Approach, vary endogenously the market organisation, i. e. the degree of competition as well as the transmission of temporary price-changes. Even the „schedule" of the purchasing-power-parity depends on this way created persistence or even hysteresis-effects.