IDEAS home Printed from https://ideas.repec.org/a/bla/manchs/v67y1999i3p367-91.html
   My bibliography  Save this article

Stability of Production Prices: A Modification to the Full-Cost Approach

Author

Listed:
  • Borissov, Kirill

Abstract

An approach to the problem of the stability of production prices generalizing the full-cost approach is proposed. It is based on comparing current profit rates with a target level: if the current profit rate in a sector is lower (higher) than the target level, the price of the product of this sector increases (decreases). It is proved that this leads to stability of the production prices in two models with fixed capital. In the first model, it is assumed that the author is given a nominal wage rate and that the target profit rate is formed exogenously. In the second model, he is implicitly given a real wage rate and the target profit rate is formed endogenously. Copyright 1999 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • Borissov, Kirill, 1999. "Stability of Production Prices: A Modification to the Full-Cost Approach," Manchester School, University of Manchester, vol. 67(3), pages 367-391, June.
  • Handle: RePEc:bla:manchs:v:67:y:1999:i:3:p:367-91
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/servlet/useragent?func=synergy&synergyAction=showTOC&journalCode=manc&volume=67&issue=3&year=1999&part=null
    File Function: link to full text
    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.

    More about this item

    Statistics

    Access and download statistics

    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:bla:manchs:v:67:y:1999:i:3:p:367-91. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/semanuk.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.