Pricing and Product Market Structure in Open Economies: An Empirical Test
George Alogoskoufis (),
Christopher Martin () and
Nikitas Pittis ()
No 486, CEPR Discussion Papers from C.E.P.R. Discussion Papers
This paper investigates whether the structure of product markets in the industrial economies conforms to the assumptions of the two main benchmark models of international macroeconomics, namely the one-sector imperfect-substitutes model, and the two-sector model with non-traded goods. Our proposed test rests on the estimation of price equations and also allows the estimation of the degree of price sluggishness. Our findings, for 20 OECD economies, suggest that the one sector model is rejected in favour of a generalized model with two types of internationally traded goods. They also suggest significant sluggishness in the adjustment of prices.
Keywords: Error-Correction Models; Price Setting; Traded and Non-Traded Goods (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at firstname.lastname@example.org
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:486
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=486
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().