This paper documents and analyses output and price reactions to monetary shocks for 13 manufacturing sectors in the UK. It is found that market share turns out to be a key variable for explaining heterogeneity of industrial price adjustment to monetary shocks in the sense that firms in concentrated industries have more power to adjust prices to demand shocks. However, sectoral output movements are better explained by the traditional interest rate channel.
The Impact of Nonfinancial Factors in Heterogeneous Sectoral Price and Output / TENA HORRILLO, Juan de Dios. - In: APPLIED ECONOMICS QUARTERLY. - ISSN 1611-6607. - 52:(2006), pp. 221-238.
The Impact of Nonfinancial Factors in Heterogeneous Sectoral Price and Output
TENA HORRILLO, Juan de Dios
2006-01-01
Abstract
This paper documents and analyses output and price reactions to monetary shocks for 13 manufacturing sectors in the UK. It is found that market share turns out to be a key variable for explaining heterogeneity of industrial price adjustment to monetary shocks in the sense that firms in concentrated industries have more power to adjust prices to demand shocks. However, sectoral output movements are better explained by the traditional interest rate channel.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
