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Robustness of the relationship between price variability and inflation for US manufacturing

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  • Elizabeth Caucutt
  • Mrinal Ghosh
  • Christina Kelton

Abstract

We study the relationship between relative price variability and inflation in two different ways. We first look at product-class census unit values for five time periods between 1958 and 1982, and find evidence of a positive relationship between variability and inflation. Then we directly update the Vining and Elwertowski (1976) study for the period 1974-91, using individual commodity series from the Bureau of Labor Statistics. We conclude by discussing differences across industries in price stickiness.

Suggested Citation

  • Elizabeth Caucutt & Mrinal Ghosh & Christina Kelton, 1998. "Robustness of the relationship between price variability and inflation for US manufacturing," Applied Economics, Taylor & Francis Journals, vol. 30(4), pages 513-519.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:4:p:513-519
    DOI: 10.1080/000368498325778
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    References listed on IDEAS

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    Cited by:

    1. Bakhshi, Hasan, 2002. "Inflation and relative price variability," Economics Letters, Elsevier, vol. 76(1), pages 27-33, June.

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