Has Greater Competition Restrained U.S. Inflation?
AbstractThis paper shows how increased goods market competition affects the behavior of inflation in a multisector economy. By raising the price elasticity of demand, increased goods market competition theoretically lowers inflation and makes the aggregate price level less sensitive to aggregate demand shocks. We find that proxies for the aggregate degree of goods market competition are statistically and economically significant in short-run Phillips curve models of core inflation. Evidence indicates that heightened goods market competition has flattened the slope of the short-run, expectations-augmented Phillips curve and slightly lowered the nonaccelerating inflation rate of unemployment (NAIRU).
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Southern Economic Association in its journal Southern Economic Journal.
Volume (Year): 66 (2000)
Issue (Month): 3 (January)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- repec:kof:anskof:13-01 is not listed on IDEAS
- Heiner Mikosch, 2012. "Sticky Prices, Competition and the Phillips Curve," KOF Working papers 11-294, KOF Swiss Economic Institute, ETH Zurich.
- Jürgen Janger, 2008. "Supply-Side Triggers for Inflation in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 34â69.
- Daniels, Joseph P. & VanHoose, David D., 2006. "Openness, the sacrifice ratio, and inflation: Is there a puzzle?," Journal of International Money and Finance, Elsevier, vol. 25(8), pages 1336-1347, December.
- Joseph Daniels & David VanHoose, 2009.
"Trade Openness, Capital Mobility, and the Sacrifice Ratio,"
Open Economies Review,
Springer, vol. 20(4), pages 473-487, September.
- Joseph P. Daniels & David D. VanHoose, 2007. "Trade Openness, Capital Mobility, and the Sacrifice Ratio," Working Papers and Research 0701, Marquette University, Center for Global and Economic Studies and Department of Economics.
- Khan, Hashmat, 2005.
"Price-setting behaviour, competition, and markup shocks in the new Keynesian model,"
Elsevier, vol. 87(3), pages 329-335, June.
- Hashmat Khan, 2004. "Price-setting behaviour, competition, and mark-up shocks in the New Keynesian model," Bank of England working papers 240, Bank of England.
- Wong, Chin-Yoong & Eng, Yoke-Kee, 2010. "Vertically globalized production structure in New Keynesian Phillips curve," The North American Journal of Economics and Finance, Elsevier, vol. 21(2), pages 198-216, August.
- Nikola Bokan & Andrew Hughes Hallett, 2007.
"The Impact of Tax, Product and Labour Market Distortions on the Phillips Curve and the Natural Rate of Unemployment,"
Kiel Working Papers
1336, Kiel Institute for the World Economy.
- Bokan, Nikola & Hughes Hallett, Andrew, 2007. "The Impact of Tax, Product and Labour Market Distortions on the Phillips Curve and the Natural Rate of Unemployment," Economics Discussion Papers 2007-42, Kiel Institute for the World Economy.
- Heiner Mikosch, 2013. "Der Zusammenhang zwischen Preisen, Kapazitätsauslastung und Wettbewerb," KOF Analysen, KOF Swiss Economic Institute, ETH Zurich, vol. 7(1), pages 91-103, March.
- Andrew Hughes Hallett, 2010. "Why Do Some Countries Undertake Structural Reforms When Others Do Not? Evidence From The Oecd And Emerging Market Economies," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 81-103.
- Jenny Lye & Ian McDonald, 2008. "The Eisner Puzzle, the Unemployment Threshold and the Range of Equilibria," International Advances in Economic Research, Springer, vol. 14(2), pages 125-141, May.
- John V. Duca & David D. VanHoose, 1998.
"The rise of goods-market competition and the fall of nominal wage contracting: endogenous wage contracting in a multisector economy,"
9805, Federal Reserve Bank of Dallas.
- Duca, John V. & Van Hoose, David D., 2001. "The Rise of Goods-Market Competition and the Fall of Nominal Wage Contracting: Endogenous Wage Contracting in a Multisector Economy," Journal of Macroeconomics, Elsevier, vol. 23(1), pages 1-29, January.
- Daniels, Joseph P. & VanHoose, David D., 2013.
"Exchange-rate pass through, openness, and the sacrifice ratio,"
Journal of International Money and Finance,
Elsevier, vol. 36(C), pages 131-150.
- Daniels, Joseph P & VanHoose, David D, 2010. "Exchange-Rate Pass Through, Openness, and the Sacrifice Ratio," Working Papers and Research 2010-05, Marquette University, Center for Global and Economic Studies and Department of Economics.
- John V. Duca & David D. VanHoose, 1997.
"Goods-market competition and profit sharing: a multisector macro approach,"
9709, Federal Reserve Bank of Dallas.
- Duca, John V. & VanHoose, David D., 1998. "Goods-market competition and profit sharing: a multisector macro approach," Journal of Economics and Business, Elsevier, vol. 50(6), pages 525-534, November.
- Daniels, Joseph P. & Nourzad, Farrokh & VanHoose, David D., 2006.
"Openness, centralized wage bargaining, and inflation,"
European Journal of Political Economy,
Elsevier, vol. 22(4), pages 969-988, December.
- Joseph P. Daniels & Farrokh Nourzad & David D. VanHoose, 2005. "Openness, Centralized Wage Bargaining, and Inflation," Working Papers and Research 0505, Marquette University, Center for Global and Economic Studies and Department of Economics.
- Andrea Vaona, 2014. "The Price-Price Phillips Curve in Small Open Economies and Monetary Unions: Theory and Empirics," Kiel Working Papers 1904, Kiel Institute for the World Economy.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini).
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.