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Table 6 Estimates of the exchange rate pass-through to consumer prices for Household Products

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

Product category

Pre-trend difference

Standard DID estimate

Synthetic DID estimate

Implied pass-through

All-items HICP

0.01

\(-\)1.64\(^{***}\)

\(-\)1.23\(^{**}\)

0.12

(0.04)

(0.26)

(0.48)

Actual rentals for housing

0.15\(^{***}\)

\(-\)2.18\(^{***}\)

\(-\)0.5

0.05

(0.02)

(0.68)

(1.25)

Books

0.38

\(-\)8.25\(^{***}\)

\(-\)4.97\(^{***}\)

0.49

(0.24)

(0.17)

(1.84)

Clothing

\(-\)0.84

4.99\(^{**}\)

2.42

\(-\)0.24

(0.72)

(2.46)

(2.06)

 

Electrical appliances for personal care

\(-\)0.02

\(-\)2.89\(^{***}\)

\(-\)3.21\(^{***}\)

0.32

(0.1)

(0.57)

(0.65)

Equipment for sport

\(-\)0.26\(^{**}\)

\(-\)1.53\(^{***}\)

\(-\)2.57\(^{**}\)

0.25

(0.12)

(0.07)

(1.28)

Footwear

\(-\)0.89

2.61

0.56

\(-\)0.06

(0.7)

(3.16)

(2.08)

Household equipment

0.12\(^{*}\)

\(-\)2.93\(^{***}\)

\(-\)2.07\(^{***}\)

0.21

(0.06)

(0.66)

(0.62)

Furniture and furnishings

0.12

\(-\)4.61\(^{***}\)

\(-\)3.18\(^{***}\)

0.32

(0.13)

(1.02)

(0.86)

Games, toys and hobbies

\(-\)0.09

\(-\)1.76\(^{***}\)

\(-\)2.13\(^{**}\)

0.21

(0.08)

(0.34)

(0.97)

Gardens, plants and flowers

0.09

\(-\)1.45\(^{**}\)

\(-\)1.09

0.11

(0.1)

(0.6)

(1.09)

Garments

\(-\)0.91

5.87\(^{**}\)

3.13

\(-\)0.31

(0.76)

(2.64)

(1.97)

Glassware, tableware and

0.09

\(-\)0.76

\(-\)0.81

0.08

(0.06)

(0.53)

(0.82)

Goods and services for routine

\(-\)0.14\(^{**}\)

\(-\)0.72\(^{*}\)

\(-\)1.04\(^{*}\)

0.1

(0.06)

(0.41)

(0.58)

Household appliances

0.47\(^{***}\)

\(-\)4.08\(^{**}\)

\(-\)2.84\(^{***}\)

0.28

(0.08)

(1.61)

(0.84)

Household textiles

\(-\)0.02

\(-\)2.54\(^{***}\)

\(-\)2.36\(^{**}\)

0.23

 

(0.09)

(0.29)

(1.05)

 

Major household appliances

0.45\(^{***}\)

\(-\)3.87\(^{**}\)

\(-\)3.36\(^{***}\)

0.33

(0.09)

(1.63)

(0.85)

Non-durable household goods

\(-\)0.23\(^{***}\)

\(-\)0.41

\(-\)1.25

0.12

(0.08)

(0.49)

(0.95)

Other personal effects

\(-\)0.03

\(-\)1.62\(^{***}\)

\(-\)1.99\(^{*}\)

0.2

(0.08)

(0.44)

(1.13)

Other recreational items

0.04

\(-\)1.47\(^{***}\)

\(-\)1.46\(^{*}\)

0.14

(0.06)

(0.31)

(0.75)

Personal care

0.04

\(-\)2.48\(^{***}\)

\(-\)1.94\(^{***}\)

0.19

(0.05)

(0.24)

(0.54)

Pets and related products and services

0.21\(^{***}\)

\(-\)1.18\(^{*}\)

0.5

\(-\)0.05

(0.07)

(0.61)

(0.4)

Pharmaceutical products

0.19\(^{***}\)

\(-\)2.39\(^{***}\)

\(-\)0.11

0.01

(0.05)

(0.46)

(0.83)

Spare parts and accessories for personal transport equipment

0.03

\(-\)3.5\(^{***}\)

\(-\)3.61\(^{***}\)

0.36

(0.03)

(0.77)

(0.91)

Telephone and telefax equipment

0.4\(^{**}\)

\(-\)5.82\(^{***}\)

0.13

\(-\)0.01

(0.18)

(1.88)

(2.77)

Stationery

0.12

\(-\)3.6\(^{***}\)

\(-\)1.61

0.16

(0.09)

(0.32)

(1.28)

Tobacco

0.01

\(-\)1.99\(^{***}\)

\(-\)0.96

0.1

(0.03)

(0.75)

(1.32)

Tools and equipment for house and garden

0.06

\(-\)1.17\(^{***}\)

\(-\)1.9\(^{***}\)

0.19

(0.08)

(0.44)

(0.66)

  1. The DID estimates are computed using the Eurostat (2022) HICP consumer price data from January 2014 to December 2015, with Switzerland as the treated unit and 33 European countries as a control group. The treatment time (Swiss franc appreciation) is in January 2015, so that the pre-treatment period is from January to December 2014 and post-treatment from January to December 2015. Standard DID estimates are computed with Eq. 3 using a GDP-weighted control group, and synthetic DID estimates with the Arkhangelsky et al. (2021) method. Pre-trend difference is the difference in slope between two pre-treatment linear regressions for Europe and Switzerland (Eq. 1) which should be zero under the pre-trend assumption. The 1-year pass-through is implied from the synthetic DID estimates and is computed using Eq. 4. \({*}p<0.1\); \({**}p<0.05\); \({***}p<0.01\)