Dynamic Adjustment of Internal Prices to External Price Changes, Federal Republic of Germany, 1958–1979

An Application of Rank-Reduced Distributed-Lag Estimation by Spline Functions
  • John S. Chipman
Conference paper


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.


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© Springer-Verlag Berlin Heidelberg 1983

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  • John S. Chipman

There are no affiliations available

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