The behaviour of U.K. export prices of manufactured goods 1970–1983 | Zendy

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The behaviour of U.K. export prices of manufactured goods 1970–1983

Author(s) -

Cuthbertson Keith

Publication year - 1986

Publication title -

journal of applied econometrics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 2.878

H-Index - 99

eISSN - 1099-1255

pISSN - 0883-7252

DOI - 10.1002/jae.3950010304

Subject(s) - imperfect competition , economics , imperfect , competition (biology) , unit (ring theory) , law of one price , monetary economics , relative price , econometrics , international economics , microeconomics , price level , mid price , mathematics , philosophy , mathematics education , biology , ecology , linguistics

This paper examines the importance of expectations in the determination of U.K. export prices. Export prices are found to depend upon expectations of total domestic unit costs and foreign prices. The non‐linear restrictions implied by the forward‐looking model are found to hold and it performs adequately relative to a backward‐looking error feedback model. The law of one price is rejected and the evidence is consistent with imperfect competition in export markets.

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