Sectoral Price Dynamics in Japan: A Threshold Approach

Nicolas Canry (), Julien Fouquau and Sebastien Lechevalier
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Nicolas Canry: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This paper focuses on the real - as opposed to the monetary - side of the economy to explain price dynamics in Japan between 1981 and 2001. We use a panel industry dataset to examine the impact of institutional and structural factors on the heterogeneous price dynamics in 10 manufacturing sectors. Although the evolution of unit labor costs may seem to be the driving force of these price dynamics, our analysis underlines the importance of the increasingly competitive environment, as captured by rising import penetration. Along with the decline of bargaining power of the workforce, this is a key factor underlying the deflationary pressures that characterized Japanese manufacturing industries in the 1990s.

Date: 2011-05-12
Note: View the original document on HAL open archive server: https://hal.science/hal-00945036
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Citations: View citations in EconPapers (2)

Published in Economics Bulletin, 2011, 31 (2), pp.1322-1335

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Related works:
Journal Article: Sectoral Price Dynamics in Japan: A Threshold Approach (2011)
Working Paper: Sectoral Price Dynamics in Japan: A Threshold Approach (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00945036

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