- Trade Prices and the Global Trade Collapse of 2008–2009
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- by Gopinath, Gita
- We document the behavior of trade prices during the Great Trade Collapse of 2008–2009 using transaction-level data from the US Bureau of Labor Statistics. First, we find that differentiated manufactures exhibited marked stability in their trade prices during the large decline in their trade volumes. Prices of non-differentiated manufactures, by contrast, declined sharply. Second, while the trade collapse was much steeper among differentiated durable manufacturers than among non-durables, prices in both categories barely changed. Third, despite this lack of movement in average price levels, the frequency and magnitude of price adjustments at the product level noticeably changed with the onset of the crisis.
- Publication Type: Working Papers
- Published Date: November, 2011
- Field of Interest: International Economics
- Gopinath, Gita, Oleg Itskhoki and Brent Neiman. "Trade Prices and the Global Trade Collapse of 2008–2009." Working Paper 2011-0013, Weatherhead Center for International Affairs, Harvard University, November 2011.
- Co-author Oleg Itskhoki is a professor of economics at Princeton University. Co-author Brent Neiman is at the
Booth School of Business at the University of Chicago.