Price Behavior in the Manufacturing Sector for Sixteen Industries Classified by Stage-of-Process / Joel Popkin.

By:

Popkin, Joel

Contributor(s):

National Bureau of Economic Research

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w0238.Publication details: Cambridge, Mass. National Bureau of Economic Research 1978.Description: 1 online resource: illustrations (black and white)Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: One major finding of this paper is that prices in most basic materials producing industries are responsive to demand while prices in most finished goods producing industries are not. If the reverse were true, stabilization policies would. have more effect in the short run on prices and less effect on output than is currently the case. A second finding relates to the 1971-4 period of wage and price controls and the period immediately following their termination. During controls, prices in most manufacturing sectors did rise somewhat slower than their historical relationship to costs would suggest. But after controls ended prices rose relative to costs by considerably more than the amount of their shortfall during controls. This suggests that some fundamental change in price-cost relationships may have taken place in 1974.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w0238 (Browse shelf(Opens below))	Not For Loan

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March 1978.

One major finding of this paper is that prices in most basic materials producing industries are responsive to demand while prices in most finished goods producing industries are not. If the reverse were true, stabilization policies would. have more effect in the short run on prices and less effect on output than is currently the case. A second finding relates to the 1971-4 period of wage and price controls and the period immediately following their termination. During controls, prices in most manufacturing sectors did rise somewhat slower than their historical relationship to costs would suggest. But after controls ended prices rose relative to costs by considerably more than the amount of their shortfall during controls. This suggests that some fundamental change in price-cost relationships may have taken place in 1974.