scholarly journals An Econometric Analysis of Price Behaviour in Pakistan

1973 ◽  
Vol 12 (4) ◽  
pp. 375-392 ◽  
Author(s):  
B. A. Azhar
Keyword(s):  
Price Level ◽  
Full Employment ◽  
Aggregate Demand ◽  
Labour Unions ◽  
Explanatory Variables ◽  
Price Increases ◽  
Demand Pull ◽  
Vast Literature ◽  
The Cost ◽  
Structural Theories

In this paper an attempt has been made to explore the major causes of price level changes in West Pakistan during the past thirteen years and to deter¬mine their relative importance in explaining the price fluctuations. A supple¬mentary object of the paper is to develop a predictive mechanism which may be used to forecast the response of price level to changes in the explanatory variables used in the regression model. There is vast literature on inflation theory [3] but not so much on quanti¬tative evidence. Broadly, there are three groups of theories of inflation: the demand pull theories, which state that inflationary pressures result from aggregate demand exceeding aggregate supply at full employment; the cost-push theories, which stress the producers' power to pass on cost increases in higher prices even when demand remains unchanged. The third group of theories, which take a mid-way position between the demand-pull and the cost-push theories, are a number of structural theories, notably those associated with the names of Ackley, Eckstein, and Schultze [1,5,11]. According to Ackley, inflation results from mark-up of prices. He considers the price policies of the firms and the wage policies of the labour unions to be responsible for inflation. He puts forward the hypothesis that mark ups used by business in setting prices and those applied by the labour unions to their cost of living for getting higher wages tend to rise in an inflationary situation which results in pyramiding of costs. Professor Otto Eckstein advances the hypothesis that inflation may be caused by price increases in certain bottleneck industries even when there is no over-all excess demand in the economy.

Investment and Prices in Kaldor’s Model of Income Distribution

1993 ◽  
Author(s):  
R. Ph.G. Walsteijn
Keyword(s):  
Price Level ◽  
Full Employment ◽  
Aggregate Demand ◽  
National Income ◽  
Institutional Characteristics ◽  
Neoclassical Theory ◽  
General Price Level ◽  
The Relationship ◽  
Equilibrium Growth

In the first part of this paper are restated the main differences separating the Keynesian from the neoclassical theory with respect to aggregate demand and national income. Next, Kaldor’s distribution theory is examined, with special attention paid to the role of the general price level. Kaldor has demonstrated that equilibrium growth, with full employment of productive resources, is not necessarily restricted by an insufficient adaptation of savings to investment. Given this framework, it becomes crucial that the relationship between prices and money wages is fixed by the level of aggregate demand. Taking several social, cultural, and institutional characteristics of modern capitalist societies into consideration, this full employment equilibrium breaks down. The results are different from Kaldor’s but seem to bring his analysis more into line with the Keynesian heritage.

A note on nominal GNP targeting and the price level elasticity of aggregate demand

1993 ◽  
Vol 21 (1) ◽  
pp. 105-105
Author(s):  
Ben L. Kyer ◽  
Gary E. Maggs
Keyword(s):  
Price Level ◽  
Aggregate Demand

scholarly journals Effect of Monetary Policy on Financial Intermediation in Nigeria

2020 ◽  
pp. 22-36
Author(s):  
Chukwu, Kenechukwu Origin ◽  
Ogbonnaya-Udo, Nneka
Keyword(s):  
Monetary Policy ◽  
Financial Intermediation ◽  
Research Work ◽  
Secondary Data ◽  
Causality Test ◽  
Explanatory Variables ◽  
Financial Infrastructure ◽  
Effect Of Monetary Policy ◽  
The Cost ◽  
Reserve Ratio

The study examined the effect of monetary policy on financial intermediation in Nigeria. Secondary data were collected from Central Bank of Nigeria statistical bulletin spanning from 1988 to 2018.The research work selected Nigeria as its sample and used the VECM to test the effect of the explanatory variables (Monetary Policy Rate, Cash Reserve Ratio, Loan to Deposit Ratio and Liquidity Ratio) on the dependent variable (Total Domestic Bank Credit).The findings from the study revealed that monetary policy has insignificant effect on intermediation in Nigeria. The granger causality test also shows a unidirectional causality between monetary policy and intermediation in Nigeria. The results suggest that lending interest rate is still high while deposit rate is low and this discourages savings and borrowing in the country. The study recommends among others that monetary policy should be reviewed in order to lower the cost of borrowing (lending rate) so as to encourage investors to borrow more. Commercial banks should try to increase its deposit rates which will help them to mobilize more deposits, as this will enhance their lending services. Financial infrastructure in the country should be improved upon as this will help banks in deposit mobilization especially the unbanked in the country.

scholarly journals THE COST OF NEGATIVE INCOME TAX AS A FISCAL MEASURE TO TACKLE POVERTY IN NORTH MACEDONIA

2020 ◽  
Author(s):  
Ivana Velkovska
Keyword(s):  
Income Tax ◽  
Aggregate Demand ◽  
Household Consumption ◽  
Poor People ◽  
Basic Income ◽  
Positive Effects ◽  
Negative Income ◽  
The World ◽  
The Cost ◽  
Negative Income Tax

This paper makes an effort to evaluate the cost of negative income tax as a fiscal measure aiming to tackle the persistent high poverty rate in Macedonia. Poverty, income inequality and unemployment are expected to rise all around the world due to the pandemic corona virus outbreak and the subsequent economic crisis. Governments around the world have already implemented measures similar to universal basic income with the purpose of increasing household consumption and stimulating aggregate demand but also to mitigate the devastating effects that the recent unfavorable economic developments have on the citizens living in poverty or are at the risk of poverty. However, shrinking fiscal spaces of small economies could be an obstacle to implement such policies. Compared to universal basic income, negative income tax is a less costly policy option that targets the population living in poverty instead of providing payments to everyone regardless of their income. The analysis based on the available data is indicating that implementing such policy would cost as much as 9.7 billion MKD per year, which is 4% of the planned state budget revenues for Y2020, 8% of the planned social transfers for Y2020 and 29% of the funds that the state has made available for tackling the COVID 19 crisis so far. In addition, the negative income tax could trigger various positive effects on the economy. Since poor people spend almost all of their income, it could be expected that implementing negative income tax would rise household consumption. According to the empirical analysis in this paper, household consumption is in highest correlation to GDP growth in Macedonia compared to the other explanatory variables (government consumption, investments, import and export).

Ordering Policy in a Two-Warehouse Environment for Deteriorating Items under Inflationary Conditions

2014 ◽  
pp. 320-338
Author(s):  
Chandra K. Jaggi ◽  
Sarla Pareek ◽  
Aditi Khanna ◽  
Ritu Sharma
Keyword(s):  
Global Economy ◽  
Aggregate Demand ◽  
Optimal Solution ◽  
Deteriorating Items ◽  
Inventory Problem ◽  
Inventory Costs ◽  
Ordering Policy ◽  
Demand Rate ◽  
Warehousing Systems ◽  
The Cost

In this chapter, the two-warehouse inventory problem is considered for deteriorating items with constant demand rate and shortages under inflationary conditions. In today’s unstable global economy, the effects of inflation and time value of money cannot be ignored as it increases the cost of goods. To safeguard from the rising prices, during the inflation regime, the organization prefers to keep a higher inventory, thereby increasing the aggregate demand. This additional inventory needs additional storage space that is facilitated by a rented warehouse. Further ahead, in the real business world, to retain the freshness of the commodity, most of the organizations adopt the First-In-First-Out (FIFO) dispatching policy. FIFO policy yields fresh and good conditioned stock thereby resulting in customer satisfaction, especially when items are deteriorating in nature. However, the two warehousing systems usually assume that the holding cost of items is more in Rental Warehouse (RW) than the Owned Warehouse (OW) due to modern preserving techniques. Therefore, to reduce the inventory costs, it is economical to consume the goods of RW at the earliest. This approach is termed the Last-In-First-Out (LIFO) approach. The objective of the present chapter is to develop a two warehouse inventory model with FIFO and LIFO dispatching policies under inflationary conditions. Further, comparison between FIFO and LIFO policies has been exhibited with the help of a numerical example. Sensitivity analysis has also been performed to study the impact of various parameters on the optimal solution.

scholarly journals Recent Cost Increases: Their Future Impacts on Agriculture

1975 ◽  
Vol 7 (1) ◽  
pp. 71-79
Author(s):  
Wayne A. Boutwell ◽  
Thomas W. Little
Keyword(s):  
Agricultural Production ◽  
Agricultural Sector ◽  
Price Level ◽  
Capital Requirements ◽  
Farm Income ◽  
Agricultural Commodities ◽  
Domestic Prices ◽  
The Cost ◽  
The Impact ◽  
Input Prices

The impact of rapidly escalating input prices of farm income, agricultural production, production adjustments, the general price level, the cost of living and capital requirements in the agricultural sector is a source of increasing concern to farmers, suppliers of capital to agriculture, and consumers of agricultural products. Record prices for agricultural commodities, such as feed grains and soybeans, partially masked the effects of a 52 percent increase in the index of prices paid for production items on net farm income during the period 1971–74. As agricultural machinery and farm buildings are replaced, world stocks of agricultural commodities are replenished, and domestic prices begin to decline, the magnitude of these cost increases will become more apparent.

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