IDEAS home Printed from https://ideas.repec.org/p/mtl/montde/8805.html
   My bibliography  Save this paper

The Markup Flexibility and Inflation: a Case Study of a Large Public Entreprise

Author

Listed:
  • Loranger, J.G.

Abstract

This Paper Goes Against the Current That, When Price Ae Determined From a Markup, Labor Is the Main Cause for Inflation. It Will Be Shown on the Contrary That Capital, Under Its Physical Anf Financial Form, Is the Main Culprit for Inflation. the Main Hypothesis to Be Tested Is That in Time of Crisis, There Is a Divergence Between Debts the Value of Social Capital; and Such a Divergence Puts Upward Pressure on the Markup Coefficient. the Markup Flexibility Opens the Door to Greater Financial Commitments to Be Paid and to Higher Depreciation Rate. in Time of Crisis, State Controlled Entreprises Such As Telmex Tend to Behave More Like Profit Maximizer Than Sale Maximizer. the Empirical Tests Are Conducted From a Two Equation Model: a Price Equation Based on a Flexible Markup Coefficient and a Markup Equation Which Is Expressed in Terms of the Relative Price of Physical and Financial Capital with Espect to the Wage Rate. the Best Results Are Obtained From the Reduced Form of the Price Equation Expressed in Log Form. Under the Hypothesis of Neutral Productivity Change, the Responsability of Capital with Respect to Inflation Would Be Between 75% and 90%.

Suggested Citation

  • Loranger, J.G., 1988. "The Markup Flexibility and Inflation: a Case Study of a Large Public Entreprise," Cahiers de recherche 8805, Universite de Montreal, Departement de sciences economiques.
    • Handle: RePEc:mtl:montde:8805
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mtl:montde:8805. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sharon BREWER (email available below). General contact details of provider: https://edirc.repec.org/data/demtlca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.