Modelling cyclical variation in the cost pass-through: a regime-dependent approach

• Authors: Konopczak, Karolina

Abstracts

EN

In this study a regime-dependent ARDL model is developed in order to investigate how labour costs feed through into prices conditional on the business cycle position. Its estimates enable inference on the cyclical behaviour of markups. The proposed methodology is applied to the Polish industrial sectors. The obtained estimates point to procyclicality as the prevailing pattern of markup adjustment. Thus, overall markups in the Polish industry seem to have a mitigating effect on business cycle fluctuations. The degree of procyclicality seems, however, to be positively correlated with the degree of the industry’s competitiveness.

Keywords

EN

non-linear cointegration; regime-dependence; cost pass-through; markup cyclicality

• Publisher: Główny Urząd Statystyczny
• Journal: Przegląd Statystyczny
• Year: 2020
• Volume: 67
• Issue: 2
• Pages: 97-113

Dates

published

2020-12-10

Contributors

author

Konopczak, Karolina

Identifiers

DOI

10.5604/01.3001.0014.5725