hinnaedastus
Hinnaedastus, Finnish for price transmission, is the process whereby changes in prices at one stage of the production and distribution chain are passed through to prices at downstream stages or to consumer prices. It covers transmission within domestic markets as well as across borders and markets.
The transmission occurs through several channels: changes in input costs; changes in wholesale prices; shifts in
Determinants include demand elasticity, timing of price adjustments (menu costs), currency fluctuations, taxes and subsidies, and
In empirical work, pass-through is measured with coefficients indicating the fraction of a price change that
Significance: understanding hinnaedastus informs inflation dynamics, monetary policy, and sectoral pricing strategies. Limitations include incomplete transmission,