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Who�s Most Exposed to International Shocks? Estimating Differences in Import Price Sensitivity across U.S. Demographic Groups

Author

Listed:
  • Colin J. Hottman
  • Ryan Monarch
Abstract
Differences in consumption patterns across demographic groups mean that international price shocks differentially affect such groups. We construct import price indexes for U.S. households that vary by age, race, marital status, education, and urban status. Black households and urban households experienced significantly higher import price inflation from 1996-2018 compared to other groups, such as white households and rural households. Sensitivity to international price shocks varies widely, implying movements in exchange rates and foreign prices, both during our sample and during the Covid-19 pandemic, drove sizable differences in import price inflation � and total inflation � across households.

Suggested Citation

  • Colin J. Hottman & Ryan Monarch, 2023. "Who�s Most Exposed to International Shocks? Estimating Differences in Import Price Sensitivity across U.S. Demographic Groups," Working Papers 23-13, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:23-13
    as

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    File URL: https://www2.census.gov/library/working-papers/2023/adrm/ces/CES-WP-23-13R.pdf
    File Function: Revised version, 2024
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    File URL: https://www2.census.gov/library/working-papers/2023/adrm/ces/CES-WP-23-13.pdf
    File Function: First version, 2023
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    import price inflation; exchange-rate passthrough; inequality;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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