Cyclical and competitive influences on pricing in Australian manufacturing

Harry Block, Michael Olive

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

Dynamic pricing equations are estimated using an error correction model, with data on a panel of 89 Australian manufacturing industries for the 14 years, 1971/72 through 1984/85. The overall pattern is consistent with prices approximately following a fixed mark-up rule in low concentration industries, while the mark-up factor in high concentration industries is strongly pro-cyclical. Also, in high concentration industries that are heavily exposed to import competition, the mark-up factor increases with prices of foreign competing products and with the general price level for domestic manufacturers.

Original languageEnglish
Pages (from-to)268-279
Number of pages12
JournalEconomic Record
Volume75
Issue number230
Publication statusPublished - Sep 1999

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