Dundee Discussion Papers in Economics 119: The relationship between the markup and inflation in the G7 economies and Australia

Anindya Banerjee; Bill Russell

Dundee Discussion Papers in Economics 119: The relationship between the markup and inflation in the G7 economies and Australia

Anindya Banerjee, Bill Russell

Research output: Working paper/Preprint › Discussion paper

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Abstract

An I(2) analysis of inflation and the markup is undertaken for the G7 economies and Australia. We find that the levels of prices and costs are best described as I(2) processes and that except for Japan a linear combination of the log levels of prices and costs cointegrate to the markup that is integrated of order 1. It is also shown that the markup in each case cointegrates with inflation and that higher inflation is associated with a lower markup in the long-run.

Original language	English
Publisher	University of Dundee
Publication status	Published - 2000

Publication series

Name	Dundee Discussion Papers in Economics
Publisher	University of Dundee
No.	119
ISSN (Print)	1473-236X

Keywords

Inflation
Wages
Prices
Markup
I(2)
Polynomial cointegration

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DDPE_119.pdf

1 Article

The relationship between the markup and inflation in the G7 economies and Australia
Banerjee, A. & Russell, B., 2001, In: Review of Economics and Statistics. 83, 2, p. 377 384 p.
Research output: Contribution to journal › Article › peer-review

Cite this

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Dundee Discussion Papers in Economics 119: The relationship between the markup and inflation in the G7 economies and Australia

Abstract

Publication series

Keywords

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Research output

The relationship between the markup and inflation in the G7 economies and Australia

Cite this