A macro-micro approach to analyzing the determinants of price changes

Bela Gold

Omega, 1982, vol. 10, issue 2, 115-124

Abstract: This paper suggests an approach to analyzing the determinants of changes in industrial prices which provides a bridge between the broad macro perspectives of the Walrasian approach and the narrowly focussed micro approach of traditional demand and supply analysis. The analytical usefulness of the proposed approach is then explored through applications to several industrial price series. Finally, efforts are made to account for some of the interactions between product-specific short-term price adjustments and wider as well as longer-term price movements.

Date: 1982
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