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This study addresses the problem of price disparities across countries, using market structures as the central focus. It also addresses the effects of trade barriers, input-output relations and economics of scale, to determine what causes prices to vary across countries. A post-Keynsian markup pricing model incorporating market power, intermediate inputs and productivity differences is developed and tested using regression analysis. Data on sectoral price levels in Japan and the republic of Korea and data on GDP and investment price levels for a large number of countries are used. the empirical evidence shows that wages, labour productivity, market power and economies of scale are the most important variables for the explanation of differing price levels across countries. The book finds little evidence for the importance of policy-induced trade barriers and competition policy in explaining this disparity.