caa a22 4500 46904280X CHVBK 20180323132816.0 cr unu---uuuuu 170328e19920301xx s 000 0 eng 10.1007/BF00354843 doi (NATIONALLICENCE)springer-10.1007/BF00354843 Goodstein Eban Department of Economics, Skidmore College, 12866, Saratoga Springs, NY, U.S.A. aut Falling margins and rising costs [Elektronische Daten] [Eban Goodstein] Several recent papers have examined the way that industrial price-cost margins have evolved over time in response to changing demand and competitive conditions. This paper discusses a rationale for the inclusion of a third determining factor — changing unit costs. Time series analysis of a sample of seven oligopolistic industries indicates that in all cases, shocks to unit costs do play an important and statistically significant role in determining the margin. Moreover, the longer term trend in unit costs is also found to have a negative relationship with the margin, in five industries significant. This finding helps explain the decline in price-cost margins in high concentration industries in the 1970s, and provides some micro-level support for the hypothesis of an aggregate profit squeeze in the U.S. manufacturing sector over that period. Kluwer Academic Publishers, 1992 Price-cost margin nationallicence time series nationallicence price-rigidity nationallicence unit costs nationallicence Review of Industrial Organization Kluwer Academic Publishers 7/1(1992-03-01), 13-28 0889-938X 7:1<13 1992 7 11151 https://doi.org/10.1007/BF00354843 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/BF00354843 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Goodstein Eban Department of Economics, Skidmore College, 12866, Saratoga Springs, NY, U.S.A aut NATIONALLICENCE 773 0- Review of Industrial Organization Kluwer Academic Publishers 7/1(1992-03-01), 13-28 0889-938X 7:1<13 1992 7 11151 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer