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...
Autores principales: | , , , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Public Library of Science
2020
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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. |
format | Online Article Text |
id | pubmed-7018021 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2020 |
publisher | Public Library of Science |
record_format | MEDLINE/PubMed |
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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