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The purpose of this investigation is to test for the implications of alternative micro pricing policies at the aggregate industry level and to determine if, and to what extent, industries in a small open economy are able to adjust price when they are subjected to input cost increases. It is assumed that the pricing policy followed by firms is an s,S policy. Four a priori outcomes are considered, each reflecting varying degrees of cost pass-through ability based on the degree of industrydoi:10.22215/etd/1997-03597 fatcat:muhrmltwk5fernqfrxexuanuiu