Journal Article

A Nonparametric Panel Data Approach to the Cyclical Dynamics of Price-cost Margins in the Fourth Kondratieff Wave


  • Vaona
  • A.
Publication Date

By using nonparametric and panel data econometrics, this paper re-assesses the effect of both the current level of economic activity and of future expected demand on the dynamics of the price mark-up over marginal cost in US manufacturing industries from 1958 to 1996. Consistently with previous results, the current level of economic activity has a negative impact on the mark-up and expectations of future demand a positive one. Differences between consumer and producer goods and between more and less competitive sectors play a minor role. Differences between durable and non-durable goods, instead, find more empirical Support.


JEL Classification
E32, L16, L60

Key Words

  • cyclical dynamics
  • durable goods
  • mark-up
  • non-durable goods
  • nonparametric econometrics
  • panel data econometrics