Price Setting in the Argentine and Colombian Manufacturing Industry

Borradores de Economia
Number: 
90
Published: 
Classification JEL: 
E30, E31
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy
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A price-setting mechanism based on a markup over variable costs is studied for the quite different inflationary experiences of Argentina and Colombia. The paper pursues a twofold strategy: first, it test the null hypothesis of a constant markup against th