Robustness of the relationship between price variability and inflation for US manufacturing

Elizabeth Caucutt, Mrinal Ghosh and Christina Kelton

Applied Economics, 1998, vol. 30, issue 4, 513-519

Abstract: We study the relationship between relative price variability and inflation in two different ways. We first look at product-class census unit values for five time periods between 1958 and 1982, and find evidence of a positive relationship between variability and inflation. Then we directly update the Vining and Elwertowski (1976) study for the period 1974-91, using individual commodity series from the Bureau of Labor Statistics. We conclude by discussing differences across industries in price stickiness.

Date: 1998
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DOI: 10.1080/000368498325778

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