Who's Most Exposed to International Shocks? Estimating Differences in Import Price Sensitivity across U.S. Demographic Groups
March 2023
Working Paper Number:
CES-23-13R
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.
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demand,
cost,
import,
export,
commodity,
price,
expenditure,
inflation,
consumption,
rate,
imported,
importer
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Federal Reserve Bank,
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Harmonized System,
Census Bureau Disclosure Review Board,
Longitudinal Firm Trade Transactions Database,
Disclosure Review Board,
Customs and Border Protection,
Michigan Institute for Data Science
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