Discussion Papers no 157

A test on Norwegian data

Import price formation and pricing to market

Publisert:

Åpne og les publikasjonen i PDF (23 sider)

This paper investigates the determinants of Norwegian import prices of manufactures over the period 1970(1) - 1991(4). Multivariate cointegration analysis establishes a long-run relationship between import prices, foreign prices, the exchange rate and domestic unit labour costs. Normalized on import prices, the long-run elasticities are 0.63 (foreign prices and the exchange rate) and 0.37 (domestic costs). Deviations from this relationship are highly significant in a structural import price equation, which also contains positive effects of growth in domestic demand and inflation, as well as a negative effect from the Norwegian unemployment rate. The estimated parameters appear reasonably stable within the sample.

Om publikasjonen

Tittel

Import price formation and pricing to market. A test on Norwegian data

Ansvarlige

Bjørn E. Naug, Ragnar Nymoen

Serie og -nummer

Discussion Papers no 157

Utgiver

Statistics Norway, Research Department

Emne

Discussion Papers

Antall sider

23

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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