COST-OF-LIVING ADJUSTMENTS AND BUSINESS CYCLES: DISAGGREGATED EVIDENCE

Magda Kandil

Macroeconomic Dynamics, 2003, vol. 7, issue 4, 537-566

Abstract: For a sample of U.S. industries, nominal wage and price inflation follow aggregate price inflation closely during economic expansions. Hence, fluctuations in profit markup and real output are moderate in the face of expansionary demand shocks. In contrast, workers' real standard of living decreases during recessions, while producers attempt to maintain, or even increase, industrial real-price inflation. The increase in profit markup correlates with larger output contraction during recessions.

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
Working Paper: Cost of Living Adjustment and Business Cycles: Disaggregated Evidence (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:macdyn:v:7:y:2003:i:04:p:537-566_02

Access Statistics for this article

More articles in Macroeconomic Dynamics from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().