Journal Article10.1111/J.1465-7295.1977.TB01113.X
An empirical model of price and output behavior
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TL;DR: In this article, a model of short-run price and output behavior was proposed for the manufacturing sector of the U.S. economy and empirical results support the proposition that demand-oriented forces primarily influenced output while cost-push forces primarily influence prices and indicate that real interest rates affect both prices and output.
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Abstract: This paper proposes a model of short-run price and output behavior and undertakes an initial empirical investigation of the model with data from the manufacturing sector of the U.S. Economy. The model provides a relatively precise specification of the various factors that influence prices and output, and joint maximum likelihood techniques are used to estimate the parameters of the model. The empirical results support the proposition that demand-oriented forces primarily influence output while cost-push forces primarily influence prices and indicate that real interest rates affect both prices and output.
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Inventories in the keynesian macro model
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The output-inflation relationship
TL;DR: In this paper, the optimal pricing and production policy of a multi-period profit-maximizing firm under demand and output disturbances leads, in the aggregate, to a positive relationship between production and price-deviations (from the expected level), as depicted by the Lucas-type supply function.
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References
•Posted Content
Manufacturers' Inventories, Sales Expectations, and the Acceleration Principle
TL;DR: In this paper, the response of manufacturers' inventory holdings to changes in the volume of sales and the backlog of unfilled orders is examined on a quarterly basis for the period 1948-55 within a buffer-stock flexible accelerator framework.
210
The Impact of Aggregate Demand on Prices
Robert J. Gordon,William D. Nordhaus,Charles L. Schultze +2 more
- 01 Jan 1975
TL;DR: In this article, the authors apply the theory of rational expectations to stabilization policy to conclude that the monetary authority cannot affect real output by systematic policy reactions if these depend in a regular way on past events and thus can be anticipated by economic agents.