IDEAS home Printed from https://ideas.repec.org/a/ids/ijecbr/v6y2013i4p443-454.html
   My bibliography  Save this article

Price dynamics and the adjusting mechanism - an empirical investigation of the US prices between 1950s-1990s

Author

Listed:
  • Radu Munteanu

Abstract

The paper analyses the impact of the labour costs and import costs on the prices of final goods in the USA during the 1950s-1990s period. The elasticity of the final prices with respect to the import and labour price indexes is a main determinant in the go through channel affecting the prices of final goods and services and inflation in the USA. I test several econometric specifications to estimate the correct function describing the labour and import cost indexes affecting the final prices. The analysis shows that lagged variables increase the overall fit of the estimation. The contribution of my paper is to propose a more complete specification of the price formation, than the ones existing in the current studies. In addition, the paper adds to the endogenous growth literature by providing an alternative explanation of the prices of final goods in last 50 years in the USA.

Suggested Citation

  • Radu Munteanu, 2013. "Price dynamics and the adjusting mechanism - an empirical investigation of the US prices between 1950s-1990s," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 6(4), pages 443-454.
    • Handle: RePEc:ids:ijecbr:v:6:y:2013:i:4:p:443-454
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=57215
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecbr:v:6:y:2013:i:4:p:443-454. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=310 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.