Work

Does Competition Enhancement Have Permanent Inflation Effects?

Year: 2003

Type: article

Abstract: This paper presents evidence that a higher degree of product market competition leads to a permanently lower inflation rate. Among a broad set of possible candidate variables, the indicator for product market competition used in this paper (the markup) is superior in explaining inflation differentials across twenty-one OECD countries and also across the subset of EU member states. This confirms the results by Neiss (2001). Using an index for regulation of competition, it is confirmed that the markup is indeed a good proxy for product market competition.

Source: Kyklos

DOI: 10.1111/1467-6435.00210

Author: Paul Cavelaars

Institutions: Erasmus University Rotterdam, De Nederlandsche Bank

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2149492792

FWCI: 1.827

Cites: 9

Cited by: 13

Related to: 10