A new test of the inflation–real marginal cost relationship: ARDL bounds approach

Kontonikas, A. (2010) A new test of the inflation–real marginal cost relationship: ARDL bounds approach. Economics Letters, 108(2), pp. 122-125. (doi: 10.1016/j.econlet.2010.04.046)

Abstract

We test the inflation–real marginal cost relationship using data for the United States over the period 1965–2009. We utilize the ARDL bounds approach of Pesaran et al. (2001). We find that higher marginal costs increase inflation.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Kontonikas, Professor Alexandros
• Authors: Kontonikas, A.
• Subjects: H Social Sciences > HB Economic Theory
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Journal Name: Economics Letters
• ISSN: 0165-1765
• ISSN (Online): 1873-7374
• Published Online: 05 May 2010