A nonparametric panel data approach to the cyclical dynamics of price-cost margins

Andrea Vaona

No 1580, Kiel Working Papers from Kiel Institute for the World Economy

Abstract: By using nonparametric and panel data econometrics, this paper re-assesses the effect of both the current level of economic activity and of future expected demand on the dynamics of the price mark-up over marginal cost in US manufacturing industries from 1958 to 1996. Consistently with previous results, the current level of economic activity has a negative impact on the mark-up and expectations of future demand a positive one. Differences between consumer and producer goods and between more and less competitive sectors play a minor role. Differences between durable and nondurable goods, instead, find more empirical support.

Keywords: Mark-up; cyclical dynamics; durable goods; non-durable goods; nonparametric econometrics; panel data econometrics (search for similar items in EconPapers)
JEL-codes: E32 L16 L60 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1580

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