Industry structure and the dynamics of price adjustment |
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| Authors: | Anindya Banerjee |
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| Institution: | Department of Finance and Economics , McCoy College of Business Administration, Texas State University , 601 University Drive, San Marcos, TX 78666, USA E-mail: rb38@txstate.edu |
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| 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 data. 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. |
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