The Effect of Nominal Demand Shocks on Manufacturing Output: Evidence from Disaggregated Australian Data.
The menu costs model predicts that during times of rapid inflation firms are less likely to vary output in response to changes in nominal aggregate demand. This paper tests the proposition using a disaggregated sample of Australian three-digit ASIC manufacturing industries. The results show that a significant number of Australian industries exhibit behavior that is consistent with this prediction. In addition, the results show that the variability of inflation and changes to the import penetration ratio also influence the response of output to nominal demand changes. Copyright 1995 by The Economic Society of Australia.
Year of publication: |
1995
|
---|---|
Authors: | Olekalns, Nilss |
Published in: |
The Economic Record. - Economic Society of Australia - ESA, ISSN 1475-4932. - Vol. 71.1995, 212, p. 66-76
|
Publisher: |
Economic Society of Australia - ESA |
Saved in:
Saved in favorites
Similar items by person
-
Credit Rationing, Implicit Contracts Risk Aversion
Olekalns, Nilss, (1989)
-
A Note on the Cointegration Properties of Seasonally Adjusted Income and Consumption
Olekalns, Nilss, (1992)
-
Default Risk in Implicit Contract Models of the Credit Market
Sibly, Hugh, (1992)
- More ...