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Econometric Evidence on the Determinants of the Mark Up of Industrial Brazilian Firms in the 1990s

Author

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  • Carmem Aparecida Feijo

    (Fluminense Federal University (UFF), Brazil)

  • Luiz Fernando Cerqueira

    (Fluminense Federal University (UFF), Brazil)

Abstract

Our aim in this paper is to investigate in econometric terms the determinants of mark up in the Brazilian industrial firms in the 1990s. Several regressions using panel data were tested to describe the behavior of the mark up of industrial firms. All models considered microeconomic and macroeconomic variables. A negative relation was found between demand variation and mark up variation, suggesting that it evolved in an anticyclic way. This behavior is explained based on the increase degree of uncertainty that surrounded changes in the macroeconomic scenario in the 1990s..

Suggested Citation

  • Carmem Aparecida Feijo & Luiz Fernando Cerqueira, 2013. "Econometric Evidence on the Determinants of the Mark Up of Industrial Brazilian Firms in the 1990s," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 14(1a), pages .91-119.
    • Handle: RePEc:anp:econom:v:14:y:2013:i:1a:91_119
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    References listed on IDEAS

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    1. Ferreira, Pedro Cavalcanti & Guillén, Osmani Teixeira de Carvalho, 2004. "Estrutura Competitiva, Produtividade Industrial e Liberalização Comercial no Brasil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 58(4), October.
    2. Lee, Frederic S, 1984. "Full Cost Pricing: A New Wine in a New Bottle," Australian Economic Papers, Wiley Blackwell, vol. 23(42), pages 151-166, June.
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    4. Jennifer V. Greenslade & Miles Parker, 2012. "New Insights into Price‐Setting Behaviour in the UK: Introduction and Survey Results," Economic Journal, Royal Economic Society, vol. 122(558), pages 1-15, February.
    5. Carlos da Silva & Matías Vernengo, 2008. "The Decline of the Exchange Rate Pass-Through in Brazil: Explaining the "Fear of Floating"," International Journal of Political Economy, Taylor & Francis Journals, vol. 37(4), pages 64-79.
    6. Nina Shapiro & Malcolm Sawyer, 2003. "Post Keynesian price theory," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 25(3), pages 355-365.
    7. G. C. Harcourt & Peter Kenyon, 1976. "Pricing And The Investment Decision," Kyklos, Wiley Blackwell, vol. 29(3), pages 449-477, January.
    8. Eichner, Alfred S, 1973. "A Theory of the Determination of the Mark-up Under Oligopoly," Economic Journal, Royal Economic Society, vol. 83(332), pages 1184-1200, December.
    9. Paul Davidson, 1978. "Money and the Real World," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-15865-2, December.
    10. Greenslade, Jennifer & Parker, Miles, 2010. "New insights into price-setting behaviour in the United Kingdom," Bank of England working papers 395, Bank of England.
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    Cited by:

    1. Santos, Diogo Oliveira & Britto, Gustavo & Ribeiro, Rafael S.M. & Cardoso, Debora Freire, 2023. "Do wages squeeze markups? Sectoral-level evidence for Brazil, 2000–2013," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 52-66.

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    More about this item

    Keywords

    Estimation with Panel Data; Pricing; Mark Up Determination;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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