Interindustry linkages of prices—Analysis of Japan’s deflation

The interactions among macroprices with leads and lags play a significant role in explaining the behavior of an aggregate price index. Thus, to understand inflation and deflation, it is essential to explore the mechanism according to which these macroprices interact with each other. On the basis of...

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Autores principales: Kichikawa, Yuichi, Iyetomi, Hiroshi, Aoyama, Hideaki, Fujiwara, Yoshi, Yoshikawa, Hiroshi
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2020
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7018021/
https://www.ncbi.nlm.nih.gov/pubmed/32053604
http://dx.doi.org/10.1371/journal.pone.0228026
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author Kichikawa, Yuichi
Iyetomi, Hiroshi
Aoyama, Hideaki
Fujiwara, Yoshi
Yoshikawa, Hiroshi
author_facet Kichikawa, Yuichi
Iyetomi, Hiroshi
Aoyama, Hideaki
Fujiwara, Yoshi
Yoshikawa, Hiroshi
author_sort Kichikawa, Yuichi
collection PubMed
description The interactions among macroprices with leads and lags play a significant role in explaining the behavior of an aggregate price index. Thus, to understand inflation and deflation, it is essential to explore the mechanism according to which these macroprices interact with each other. On the basis of a new method, we show that, irrespective of the sources of shocks, a robust flow of changes occurs in domestic prices from upstream to downstream. Moreover, we demonstrate that macroprices change in clusters, and we identify these clusters. Firms are not symmetric. Overall, our analysis suggests that the inertia arising from input/output linkages in production explains the behavior of aggregate prices.
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spelling pubmed-70180212020-02-26 Interindustry linkages of prices—Analysis of Japan’s deflation Kichikawa, Yuichi Iyetomi, Hiroshi Aoyama, Hideaki Fujiwara, Yoshi Yoshikawa, Hiroshi PLoS One Research Article The interactions among macroprices with leads and lags play a significant role in explaining the behavior of an aggregate price index. Thus, to understand inflation and deflation, it is essential to explore the mechanism according to which these macroprices interact with each other. On the basis of a new method, we show that, irrespective of the sources of shocks, a robust flow of changes occurs in domestic prices from upstream to downstream. Moreover, we demonstrate that macroprices change in clusters, and we identify these clusters. Firms are not symmetric. Overall, our analysis suggests that the inertia arising from input/output linkages in production explains the behavior of aggregate prices. Public Library of Science 2020-02-13 /pmc/articles/PMC7018021/ /pubmed/32053604 http://dx.doi.org/10.1371/journal.pone.0228026 Text en © 2020 Kichikawa et al http://creativecommons.org/licenses/by/4.0/ This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Kichikawa, Yuichi
Iyetomi, Hiroshi
Aoyama, Hideaki
Fujiwara, Yoshi
Yoshikawa, Hiroshi
Interindustry linkages of prices—Analysis of Japan’s deflation
title Interindustry linkages of prices—Analysis of Japan’s deflation
title_full Interindustry linkages of prices—Analysis of Japan’s deflation
title_fullStr Interindustry linkages of prices—Analysis of Japan’s deflation
title_full_unstemmed Interindustry linkages of prices—Analysis of Japan’s deflation
title_short Interindustry linkages of prices—Analysis of Japan’s deflation
title_sort interindustry linkages of prices—analysis of japan’s deflation
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7018021/
https://www.ncbi.nlm.nih.gov/pubmed/32053604
http://dx.doi.org/10.1371/journal.pone.0228026
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