?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fmpra.ub.uni-muenchen.de%2F565%2F&rft.title=A+Joint+Test+of+Price+Discrimination%2C+Menu+Cost+and+Currency+Invoicing&rft.creator=Gervais%2C+Jean-Philippe&rft.creator=Larue%2C+Bruno&rft.subject=F14+-+Empirical+Studies+of+Trade&rft.subject=Q17+-+Agriculture+in+International+Trade&rft.subject=C22+-+Time-Series+Models+%3B+Dynamic+Quantile+Regressions+%3B+Dynamic+Treatment+Effect+Models+%3B+Diffusion+Processes&rft.description=This+paper+investigates+price+discriminating+behaviour+and+currency+invoicing+decisions+of+Canadian+pork+exporters+in+the+presence+of+menu+costs.+It+is+shown+that+when+export+prices+are+negotiated+in+the+exporter%E2%80%99s+currency%2C+menu+costs+cause+threshold+effects+in+the+sense+that+there+are+bounds+within+(outside+of)+which+price+adjustments+are+not+(are)+observed.+Conversely%2C+the+pass-through+is+not+interrupted+by+menu+costs+when+export+prices+are+denominated+in+the+importer%E2%80%99s+currency.+The+empirical+model+focuses+on+pork+meat+exports+from+two+Canadian+provinces+to+the+U.S.+and+Japan.+Hansen%E2%80%99s+(2000)+threshold+estimation+procedure+is+used+to+jointly+test+for+currency+invoicing+and+incomplete+pass-through+in+the+presence+of+menu+costs.+Inference+is+conducted+using+the+bootstrap+with+pre-pivoting+methods+to+deal+with+nuisance+parameters.+The+existence+of+menu+cost+is+supported+by+the+data+in+three+of+the+four+cases.++It+also+appears+that+Quebec+pork+exporters+price+discriminate+and+invoice+in+Japanese+yen+their+exports+to+Japan.+Manitoba+exporters+also+seem+to+follow+the+same+invoicing+strategy%2C+but+their+ability+to+increase+their+profit+margin+in+response+to+large+enough+own-currency+devaluations+is+questionable.+Our+currency+invoicing+results+for+sales+to+the+U.S.+are+consistent+with+subsets+of+Canadian+firms+using+either+the+Canadian+or+U.S.+currency.&rft.date=2006-06-02&rft.type=MPRA+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.identifier=https%3A%2F%2Fmpra.ub.uni-muenchen.de%2F565%2F1%2FMPRA_paper_565.pdf&rft.identifier=++Gervais%2C+Jean-Philippe+and+Larue%2C+Bruno++(2006)%3A+A+Joint+Test+of+Price+Discrimination%2C+Menu+Cost+and+Currency+Invoicing.++++&rft.language=en