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Updated: Jan 22, 2026

Electrochemical Impedance Spectroscopy as a Tool for Electrochemical Rate Constant Estimation
Published on: October 10, 2018
Alternative estimates of the well-known negative relationship between the US interest rate risk and the flow-through
Francisco Jareño1, Marta Tolentino2, Carlos Cano1,3
1Department of Economics and Finance, University of Castilla-La Mancha, Albacete, Spain.
Abstract:
This paper estimates US industries' ability to transmit inflation shocks to the prices of their products and services (flow-through capability, FTC) and the stock duration (interest rate sensitivity) at the sector level. Then, considering the significant differences in ability among industries, we analyze the relationship between FTC and interest rate sensitivity using two alternative methodologies (in both cases). Finally, we find a significant negative relationship between FTC and stock duration, as suggested by previous literature. Thus, industries with high FTC, such as S7 (Finance and Real Estate), S9 (Manufacturing), S11 (Transportation and Warehousing) and S12 (Utilities), may be less sensitive (than expected) to changes in nominal interest rates. In contrast, sectors such as S4 (Retail Trade), S8 (Information) and S10 (Professional and Administrative Services) (with high IRS) may be more sensitive (than expected) to changes in nominal interest rates, indicating a weak ability to transmit inflation shocks to the prices of their products and services.
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