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Title: |
Determinants of cyclical properties of the price-cost margin in US manufacturing industries |
| Author: |
Lee, In Kwon |
| Author
Affiliation: |
Korea Economic Research Institute |
| Source: |
International Economic Journal, September 2004, v. 18, no. 3, pp. 351-362 |
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Publication Date: |
September 2004 |
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Abstract: |
Supergame theoretical predictions tell that oligopoly pricing may be procyclical or counter-cyclical, Industry by industry analysis shows that the speed of industry growth and the size of fixed cost are crucial in distinguishing characteristically counter-cyclical industries from procyclical industries. Counter-cyclical industries are characterized by high growth of demand and low fixed costs. Procyclical industries are characterized by low growth of demand and high fixed costs. |
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