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A nonparametric panel data approach to the cyclical dynamics of price-cost margins in the fourth Kondratieff wave

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  • Andrea Vaona

    () (University of Verona
    Kiel Institute for the World Economy)

Abstract

Abstract By using nonparametric and panel data econometrics, this paper re-assesses the effect of both the current level of economic activity and of future expected demand on the dynamics of the price mark-up over marginal cost in US manufacturing industries from 1958 to 1996. Consistently with previous results, the current level of economic activity has a negative impact on the mark-up and expectations of future demand a positive one. Differences between consumer and producer goods and between more and less competitive sectors play a minor role. Differences between durable and non-durable goods, instead, find more empirical support.

Suggested Citation

  • Andrea Vaona, 2016. "A nonparametric panel data approach to the cyclical dynamics of price-cost margins in the fourth Kondratieff wave," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 155-170, August.
  • Handle: RePEc:spr:eurasi:v:6:y:2016:i:2:d:10.1007_s40821-015-0034-0
    DOI: 10.1007/s40821-015-0034-0
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    More about this item

    Keywords

    Mark-up; Cyclical dynamics; Durable goods; Non-durable goods; Nonparametric econometrics; Panel data econometrics;

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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