EconPapers    
Economics at your fingertips  
 

A Mark-Up Model of Inflation for Morocco

Hicham Bennouna

International Journal of Economics and Financial Issues, 2015, vol. 5, issue 1, 281-287

Abstract: We follow Brouwer and Ericsson (1998) approach in order to estimate a mark-up model of price over unit costs in Morocco from 1997q1 to 2013q2. This kind of models assumes that the equilibrium price level is set as a markup on some combination of input prices. Therefore, by estimating the short-run and long-run price elasticities with respect to unit labor costs and import prices, it's possible to calculate the impact of supply shocks related to production costs. This treatment of price dynamics is at the heart of the modern approach to modelling inflation, both for forecasting and for policy analysis. The mark-up model identified in this paper highlight the fact that unit labor costs and import prices are key factors in the price setting strategy of the Moroccan firms.

Keywords: mark-up; inflation; import prices; production costs; price setting. (search for similar items in EconPapers)
JEL-codes: E50 E52 E58 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/view/1054/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/download/1054/pdf (text/html)

Related works:
Journal Article: A mark-up model of inflation for Morocco (2014) Downloads
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:eco:journ1:2015-01-23

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk (ilhanozturk@yahoo.com).

 
Page updated 2024-12-28
Handle: RePEc:eco:journ1:2015-01-23