IDEAS home Printed from https://ideas.repec.org/a/oup/qjecon/v108y1993i1p1-32..html
   My bibliography  Save this article

Do Supply Curves Slope Up?

Author

Listed:
  • John Shea

Abstract

This paper examines the short-run responses of price and quantity to exogenous demand shocks for disaggregated U. S. manufacturing industries, using prior information on input-output linkages to identify industries whose fluctuations are likely to function as approximately exogenous demand shocks for other industries. I find that demand shocks induce positive covariation between price and quantity for 16 out of 26 sample industries, controlling for observable cost shift variables. When sample industries are pooled, I estimate that a demand shock which initially raises industry output by 1 percent generates a price increase of 0.182 percent within one year. I find that input-output instruments detect upward sloping supply curves more readily than least squares or other commonly used demand-shift instruments.

Suggested Citation

  • John Shea, 1993. "Do Supply Curves Slope Up?," The Quarterly Journal of Economics, Oxford University Press, vol. 108(1), pages 1-32.
  • Handle: RePEc:oup:qjecon:v:108:y:1993:i:1:p:1-32.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/2118493
    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:oup:qjecon:v:108:y:1993:i:1:p:1-32.. 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: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: .

    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.