Pricing over the Cycle

In recent studies, the cyclical behavior of markups is examined, but the role of costs in determining markups is ignored. Here, a pricing equation is estimated that implicitly measures the rate of change in markup as a function of aggregate demand growth, aggregate inflation and industry cost inflation. Results for 21 two-digit SIC industries in the U.S. over 1948 to 1979 show incomplete pass-through from cost into price, implying a negative relationship between cost and the markup. Aggregate inflation positively influences prices and markups. Aggregate demand negatively influences prices and markups in highly concentrated industries, but not otherwise.     

Part-time employment and industrial relations developments in the EEC*

Voluntary part-time work is now an established feature of EEC labour markets. In this article the author discusses the issues surrounding the Council's directive on voluntary part-time work and argues that it represents an acknowledgement by governments, employers and trade unions that part-time workers do not constitute a part of the marginal labour force.