Construct · 1 fields · 1 citations

pass-through: a standalone construct

One name. One construct. A landmark on the map.

● anchor · a standalone construct Nearest construct by meaning·not indexed
pass-through1 CONSTRUCTCost pass-throughWEYL & FABINGER · 2013

A single standalone construct; nearby constructs are located against it in the Collider. Tap a field for its definition, unit, and measures.

Economics

How much of a cost change reaches the price

In economics, pass-through is the fraction of a change in a firm's costs (a tax, a tariff, or an exchange-rate move) that is passed on to the price buyers pay, as opposed to absorbed in the firm's margin. Weyl and Fabinger's 2013 Pass-through as an economic tool: Principles of incidence under imperfect competition showed how this single ratio organises questions of tax incidence and market power. The referent is an elasticity of price with respect to cost, an entirely different construct from routing a signal or a device untouched through a system.[1]

Unit
The change in price per unit change in cost (the pass-through rate)
Recovery means
Not applicable
Measured by
Estimated by regressing prices on cost, tax, or exchange-rate shocks to recover the pass-through coefficient

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Nearby constructs

business1 fields · 1 citationsanchor · a standalone constructconstruct6 fields · 7 citationsjingle · one name, six constructscost4 fields · 4 citationsjingle · one word, four constructs

References

  1. Weyl, E. G., & Fabinger, M. (2013). Pass-through as an economic tool: Principles of incidence under imperfect competition. Journal of Political Economy, 121(3), 528–583. https://doi.org/10.1086/670401

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