MARKET-STRUCTURE AND CYCLICAL FLUCTUATIONS IN UNITED-STATES MANUFACTURING - REPLY

We reply to the Comment by Kamerschen and Park on our 1988 paper publi shed in this Review. We find that the econometric point raised by thes e authors is flawed, because differences in model structure and data a re ignored. In particular, the importance of materials input in assess ing price-cost margins is reiterated here, and illustrated with the 19 88 paper's original table. Other points of the Comment are refuted by direct reference to statistical results and inferred conclusions in th e 1988 paper.