Consumer and Wholesale Prices in a Model of Price Behavior by Stage of Processing

摘要: THIS paper was undertaken for two purposes: (1) to uncover additional quantitative information about the structure of price behavior and (2) see extent which such could be enlarged as a result studying data arrayed by stage-ofprocess. Wholesale indexes Bureau Labor Statistics (BLS) have long been arranged this way, among others, components Consumer Price Index can developed that relate these wholesale indexes. The study stage-of-process viewed an approximation type conducted in inputoutput framework, if time-series were available I-0 industries. research consisted testing theories whose determinants measured sectors relevant explanation (these are shown figure 1). This led selection set equations consumer producers' goods their intermediate inputs. Additional estimated service prices wages so nearly complete sub-model developed. model then used explore determination. approach differs from other studies behavior, most sought explain deflator private GNP its or index (WPI) manufacturing sector major subdivisions durable nondurable goods. Such not series. series should those reflecting at firms sell output customers outside sector. These reflected more closely high levels aggregation using stage-of-processing rather than any WPI. In recent review empirical on Nordhaus (1972) concludes specifications interpretations models proceeded without benefit formal theory. While hypotheses is focus present research, effort encounters common difficulties doing lack precise specification but simplistic models, poor missing data, estimation problems. To preview conclusion, difficult no one theory superior all others. At least present, it appears forecasting policy formulation based determination must combine with professional judgments reasonable persons may disagree. Given circumstances, results exploring yields some interesting potentially useful results.