Weber and Wasner (2023) Paper on Sellers' Inflation
A 2023 paper by Isabella Weber and Evan Wasner, titled 'Sellers’ Inflation, Profits and Conflict: Why Can Large Firms Hike Prices in an Emergency?', was published in the Review of Keynesian Economics. This research is a key source providing evidence for the concept of sellers' inflation in the US through input-output analysis.
0
1
Tags
Economics
Economy
Ch.4 Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
Science
Introduction to Macroeconomics Course
Related
Isabella Weber
An economic analysis of a recent inflationary period uses a method that traces how cost increases for materials and components propagate through various stages of production. The analysis finds that for many key industries, the final price increases for goods were substantially larger than what could be accounted for by the documented rise in input costs. What is the most direct conclusion that can be drawn from this specific finding?
Inflation Source Analysis
Methodology for Identifying Sellers' Inflation
Evaluating a Method for Inflation Analysis
According to the logic of input-output analysis used to study recent inflation, if a firm's price increases for its final goods are found to be exactly proportional to the documented increases in its input costs, this finding would serve as direct evidence of 'sellers' inflation'.
An input-output analysis is used to examine the sources of price changes for goods in an economy by comparing the change in the cost of production inputs to the change in the final price of the goods. Match each analytical observation with its most likely economic interpretation.
Analyzing Price Changes at a Manufacturing Firm
An economic study uses an input-output model to analyze a country's manufacturing sector during a period of high inflation. The study finds that for the automotive industry, the total cost of all production inputs (steel, electronics, labor, etc.) rose by an average of 10%. During the same period, the average price of finished vehicles from this industry increased by 25%. Based solely on this data, which of the following is the most logical inference?
Interpreting Input-Output Data
An input-output analysis of a country's furniture manufacturing sector reveals that while the cost of raw lumber rose by 30% and labor costs rose by 5%, the weighted average cost of all production inputs increased by 12%. During the same period, the average final price of furniture increased by 15%. What is the most accurate interpretation of this data?
Weber and Wasner (2023) Paper on Sellers' Inflation
Learn After
A national economy experiences a sudden energy supply shock, causing input costs for most firms to rise by an average of 8%. Over the next quarter, consumer prices increase by 20%, and corporate profit data reveals that profit margins in key sectors have expanded to record highs. According to the research framework that explains how large firms can opportunistically hike prices during an emergency, which of the following statements best analyzes this inflationary event?
Analyzing the 'Sellers' Inflation' Thesis
Analyzing the Methodology of the 2023 Sellers' Inflation Paper
The 'sellers' inflation' thesis posits that during a widespread economic shock, any firm, regardless of its market power or size, can opportunistically increase its prices beyond what is needed to cover rising input costs.
The 'sellers' inflation' framework argues that a widespread economic emergency can enable large firms to increase prices beyond what is necessary to cover rising input costs. Which statement best analyzes the core mechanism that allows this to happen during such an emergency?