Industry structure and the dynamics of price adjustment

Anindya Banerjee, Bill Russell

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    8 Citations (Scopus)

    Abstract

    Using annual US data for gross domestic product originating by sector between 1947 and 1997 it is shown that a negative long-run relationship between inflation and the markup is present across the sectors as well as in the aggregate. A preliminary explanation based on industry structure is explored for the relative sizes of the impact of inflation on the markup in the long-run for the various sectors.
    Original languageEnglish
    Pages (from-to)1889-1901
    JournalApplied Economics
    Volume33
    Issue number15
    DOIs
    Publication statusPublished - 2001

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    Keywords

    • Inflation
    • Wages
    • Prices
    • Markup
    • Competition
    • Industry structure

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