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Inflation and Capacity Constraints in Australian Manufacturing Industry

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Author Info
David Shepherd () (Imperial College, University of London, UK)
Ciaran Driver

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Abstract

In the present paper we estimate a model of price-cost inflation for Australia using business survey responses of firms in the manufacturing sector. The data allow us to circumvent a number of key statistical problems, related in particular to the measurement of costs and structural changes in the model. Equally important, the data allow a new and more detailed perspective on the nature of supply constraints affecting inflation in the manufacturing sector. A new finding is that capital constraints have been more important in generating inflationary pressure than labour constraints or general indicators of capacity utilisation. Copyright 2003 The Economic Society of Australia.

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Publisher Info
Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 79 (2003)
Issue (Month): 245 (06)
Pages: 182-195
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Handle: RePEc:bla:ecorec:v:79:y:2003:i:245:p:182-195

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  1. Xiaohong Li & John Ogier & John Cullen, 2006. "An economic modelling approach for public sector construction workload planning," Construction Management & Economics, Taylor and Francis Journals, vol. 24(11), pages 1137-1147, November. [Downloadable!] (restricted)
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This page was last updated on 2009-11-28.


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