Abstract
This paper presents a method for estimating lag distributions in a large-scale dynamic model in which import and export prices are treated as the explanatory variables explaining internal prices. The model is applied to monthly data on import prices, export prices, and domestic producer prices of industrial products in the Federal Republic of Germany, covering the 22-year period 1958–1979. The basic data set consists of monthly price indices (multiplied by their weights) for 34 import categories, 32 export categories, and 34 domestic categories of commodities, as indicated in Table 1.
Research was supported by National Science Foundation grant SOC77-27561, and in its initial stages by grants from the Graduate School and the Office of International Programs at the University of Minnesota. I am greatly indebted to George McCandless and Ronald Sands for their expert computational assistance, and to Barbara Craig, Kristine McFeaters, and Marie Fellbaum for their work in preparing the data set. I wish also to express my sincere thanks to Friedrich Marx and Dietrich Gralla of the Statistisches Bundesamt, Wiesbaden, for their cooperation in furnishing me with supplementary unpublished data on international and domestic prices used in this study. Finally I wish to thank the many people who have furnished valuable criticisms in numerous seminar presentations, among whom I wish particularly to mention John Helliwell of the University of British Columbia; the useful criticisms and comments of a referee are also gratefully acknowledged.
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Chipman, J.S. (1983). Dynamic Adjustment of Internal Prices to External Price Changes, Federal Republic of Germany, 1958–1979. In: Eichhorn, W., Henn, R., Neumann, K., Shephard, R.W. (eds) Quantitative Studies on Production and Prices. Physica, Heidelberg. https://doi.org/10.1007/978-3-662-41526-9_15
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DOI: https://doi.org/10.1007/978-3-662-41526-9_15
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