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Price-Cost Margins in Australian Manufacturing Industries, 1971-72

Author

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  • D. K. Round

    (University of Adelaide. I am grateful to J. Hatch, I. McLean, T. Mules, N. Norman, E. Russell and two anonymous referees for their helpful comments on earlier drafts of this paper; to members of the Departments of Economics at Rutgers University and the Virginia Polytechnic Institute for their comments at seminars based on this paper; to D. McLaren for his invaluable computing assistance and to K. Cheshire and H. Wickens for their help in compiling the data.)

Abstract

Average price-cost margins are calculated for 34 Australian manufacturing industries. Multiple regression analysis is employed to determine a relationship between price-cost margins and several variables, including concentration, risk, plant size, industry growth, the nature of the industry's product, and the geographic markets served by the industry. A brief comparison is made between the results for Australia and those found in other countries. Given the data available and the multicollinearity of the variables, it is difficult to see how this study, and the overseas studies, can draw reliable conclusions on the determinants of price-cost margins.

Suggested Citation

  • D. K. Round, 1976. "Price-Cost Margins in Australian Manufacturing Industries, 1971-72," Australian Journal of Management, Australian School of Business, vol. 1(2), pages 85-95, October.
    • Handle: RePEc:sae:ausman:v:1:y:1976:i:2:p:85-95
    DOI: 10.1177/031289627600100206
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    References listed on IDEAS

    as
    1. Khalilzadeh-Shirazi, Javad, 1974. "Market Structure and Price-Cost Margins in United Kingdom Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 67-76, February.
    2. Donald G. McFetridge, 1973. "Market Structure and Price-Cost Margins: An Analysis of the Canadian Manufacturing Sector," Canadian Journal of Economics, Canadian Economics Association, vol. 6(3), pages 344-355, August.
    3. Rhoades, Stephen A, 1973. "The Effect of Diversification on Industry Profit Performance in 241 Manufacturing Industries: 1963," The Review of Economics and Statistics, MIT Press, vol. 55(2), pages 146-155, May.
    Full references (including those not matched with items on IDEAS)

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