Average rating: | Rated 4.5 of 5. |
Level of importance: | Rated 4 of 5. |
Level of validity: | Rated 5 of 5. |
Level of completeness: | Rated 5 of 5. |
Level of comprehensibility: | Rated 4 of 5. |
Competing interests: | None |
The paper presents a valuable contribution to the literature by modifying the current input-output price models to analyze the effects of exchange rate variation on product price indices. The use of a Table Adjustment Price (TAP) model that can distinguish between the effects of imported intermediate input and imported final goods on price indices, as well as consider imperfect exchange rate pass-through to prices of imported goods, adds to the robustness of the model. The results of the model's implementation for Iran's economy are clearly presented and suggest that the increment in the exchange rate will lead to smaller increments in the price indices of the products only in certain cases.