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A new test of the inflation-real marginal cost relationship: ARDL bounds approach

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  • Kontonikas, Alexandros

Abstract

We test the inflation-real marginal cost relationship using data for the United States over the period 1965-2009. We utilize the ARDL bounds approach of Pesaran et al. (2001). We find that higher marginal costs increase inflation.

Suggested Citation

  • Kontonikas, Alexandros, 2010. "A new test of the inflation-real marginal cost relationship: ARDL bounds approach," Economics Letters, Elsevier, vol. 108(2), pages 122-125, August.
    • Handle: RePEc:eee:ecolet:v:108:y:2010:i:2:p:122-125
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    References listed on IDEAS

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    Cited by:

    1. Baxa, Jaromír & Plašil, Miroslav & Vašíček, Bořek, 2015. "Changes in inflation dynamics under inflation targeting? Evidence from Central European countries," Economic Modelling, Elsevier, vol. 44(C), pages 116-130.

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