Condiciones de mercado y calidad como determinantes del traspaso del tipo de cambio

This paper estimates the pass-through of the exchange rate to prices using data from the used-car market. To this end, it uses weekly data on used-car sales advertisements published in the newspaper El Comercio between 2014 and 2016. The analysis finds that, after controlling for the unchanging characteristics of each vehicle and advertiser, both market conditions—market tightness—and product characteristics—price—affect the pass-through of the exchange rate. Finally, evidence is found of asymmetries in the pass-through of the exchange rate to prices.