Document Type : Research Paper

Authors

• Mohammadgholi Yousefi
• Taimour Mohammadi
• Mojtaba Bahmani

Abstract

In this Paper we have used a Panel Data of two digit ISIC classsification  of Large Iranian Manufacturing industried for the period 1373-86 to test the impact of demand shocks on the prices of manufacturd good industries .The result indicate that while positive shocks were effective influencing prices, probably reflecting their flexibility,the negative shocks however, have shown mixes results.While negative shocks lead to the  decline of prices in such industries as electirical machinery and transport equipments, other industrial branches ofmanufacturing  industries have,however did not respond. Our study also show that while the impact of demand shocks has  had asymmetrical impact on industries such as non-metalic minerals, electical machinery and transport equipments, such asymmetry however,has not been realised elsewhere  in other  manufacturing industries. Finally,our rfinding  clearly indicate that the intensity of shocks has not been the same in all branches.

Keywords

• Demand shocks
• manufacturing industries
• Panel data
• asymmetical impacts
• prices