@article{Goldberg:295145, recid = {295145}, author = {Goldberg, Linda S and Tille, Cédric}, title = {Micro, macro, and strategic forces in international trade invoicing}, publisher = {National Centre of Competence in Research Financial Valuation and Risk Management}, address = {[Lieu de publication non identifié]. 2009}, number = {BOOK}, series = {NCCR FINRISK working paper series ; No. 589}, pages = {42 p. : ill.}, year = {2009}, note = {This research has been carried out within the NCCR FINRISK project on "Macro Risk, Systemic Risks and International Finance"}, abstract = {The use of different currencies in the invoicing of international trade transactions plays a major role in the international transmission of economic fluctuations. Existing studies argue that an exporter's invoicing choice reflects structural aspects of her industry, such as market share and the price-sensitivity of demand, the hedging of marginal costs, due for instance to the use of imported inputs, and macroeconomic volatility. We use a new highly disaggregated dataset to assess the roles of the various invoicing determinants. We find support for the factors identified in the literature, and document a new feature, in the form of a link between shipments size and invoicing. Specifically, larger transactions are more likely to be invoiced in the importer's currency. We offer a potential theoretical explanation for the empirical link between transaction size and invoicing by allowing invoicing to be set through a bargaining between exporters and importers, a feature that is absent from existing models despite its empirical relevance.}, url = {http://repository.graduateinstitute.ch/record/295145}, }