Heterogeneity in the exchange rate pass-through to consumer prices: the Swiss franc appreciation of 2015

Swiss Journal of Economics and Statistics

Table 4 Comparison of different DID methods

Method	All-items pass-through	Average pass-through	Average standard error	Range of pass-through
Standard	0.16	0.24	0.86	− 0.58 to 1.01
Standard with HAC	0.16	0.24	1.06	− 0.58 to 1.01
Synthetic	0.16	0.20	2.04	− 0.34 to 0.83
Synthetic excl. 5 countries	0.12	0.19	1.43	− 0.32 to 0.83
Synthetic excl. 10 countries	0.12	0.18	1.23	− 0.31 to 0.80
Synthetic excl. 15 countries	0.11	0.18	0.99	− 0.30 to 0.92

Average results of different DID methods, including a synthetic DID volatility correction that excludes the most volatile countries for each product category. The synthetic DID follows Arkhangelsky et al. (2021) and uses the Eurostat HICP consumer prices excluding missing data, with pre-treatment from January 2014 to January 2015 and post-treatment from February 2015 to December 2015. The standard DID follows Eq. 3. Effect is estimated on Swiss prices using 33 European countries as a control group. The implied 1-year pass-through is computed from the DID estimates using Eq. 4. The average pass-through, its range, and the average DID standard error are the mean over all categories of goods and services