Pricing over the cycle
In recent studies, the cyclical behavior of markups is examined, but the role of costs in determining markups is ignored. Here, a pricing equation is estimated that implicitly measures the rate of change in markup as a function of aggregate demand growth, aggregate inflation and industry cost inflat...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
Springer Science + Business Media B.V., Formerly Kluwer Academic Publishers B.V.
2001
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| Online Access: | http://hdl.handle.net/20.500.11937/14824 |
| _version_ | 1848748726545285120 |
|---|---|
| author | Bloch, Harry Olive, Michael |
| author_facet | Bloch, Harry Olive, Michael |
| author_sort | Bloch, Harry |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | In recent studies, the cyclical behavior of markups is examined, but the role of costs in determining markups is ignored. Here, a pricing equation is estimated that implicitly measures the rate of change in markup as a function of aggregate demand growth, aggregate inflation and industry cost inflation. Results for 21 two-digit SIC industries in the U.S. over 1948 to 1979 show incomplete pass-through from cost into price, implying a negative relationship between cost and the markup. Aggregate inflation positively influences prices and markups. Aggregate demand negatively influences prices and markups in highly concentrated industries, but not otherwise. |
| first_indexed | 2025-11-14T07:09:37Z |
| format | Journal Article |
| id | curtin-20.500.11937-14824 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:09:37Z |
| publishDate | 2001 |
| publisher | Springer Science + Business Media B.V., Formerly Kluwer Academic Publishers B.V. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-148242017-09-13T15:58:10Z Pricing over the cycle Bloch, Harry Olive, Michael In recent studies, the cyclical behavior of markups is examined, but the role of costs in determining markups is ignored. Here, a pricing equation is estimated that implicitly measures the rate of change in markup as a function of aggregate demand growth, aggregate inflation and industry cost inflation. Results for 21 two-digit SIC industries in the U.S. over 1948 to 1979 show incomplete pass-through from cost into price, implying a negative relationship between cost and the markup. Aggregate inflation positively influences prices and markups. Aggregate demand negatively influences prices and markups in highly concentrated industries, but not otherwise. 2001 Journal Article http://hdl.handle.net/20.500.11937/14824 10.1023/A:1011148618698 Springer Science + Business Media B.V., Formerly Kluwer Academic Publishers B.V. restricted |
| spellingShingle | Bloch, Harry Olive, Michael Pricing over the cycle |
| title | Pricing over the cycle |
| title_full | Pricing over the cycle |
| title_fullStr | Pricing over the cycle |
| title_full_unstemmed | Pricing over the cycle |
| title_short | Pricing over the cycle |
| title_sort | pricing over the cycle |
| url | http://hdl.handle.net/20.500.11937/14824 |