Estimation of the Cyclical Behaviour of Mark-ups: A Technical Note
AbstractThis paper presents estimates of the cyclical fluctuations of price-cost margins, following an extended version of the Rotemberg and Woodford (1991) approach. The results support the hypothesis of counter-cyclical price margins in most manufacturing industries, especially in the presence of downward rigidities of labour inputs. This is consistent with a growing body of empirical literature showing that economic booms tend to increase competition or decrease the incentives for collusion, thereby creating downward pressures on price margins. It also offers an appealing interpretation of the otherwise puzzling pro-cyclicality of real wages.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by OECD Publishing in its journal OECD Economic Studies.
Volume (Year): 2002 (2002)
Issue (Month): 1 ()
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Brito, Paulo B. & Costa, Luís F. & Dixon, Huw, 2013.
"Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 37(11), pages 2287-2306.
- Paulo Brito & Luís Costa & Huw Dixon, 2010. "Non-Smooth Dynamics and Multiple Equilibria in a Cournt-Ramsey Model with Endogenous Markups," Working Papers Department of Economics 2010/14, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Brito, Paulo & Costa, Luís F. & Dixon, Huw, 2008. "Non-smooth Dynamics and Multiple Equilibria in a Cournot-Ramsey Model with Endogenous Markups," Cardiff Economics Working Papers E2008/21, Cardiff University, Cardiff Business School, Economics Section, revised Jul 2010.
- Declerck, Francis & Viviani, Jean-Laurent, 2010.
"Solvency and Performance of French Wineries in Times of Declining Sales: Co‐operatives and Corporations,"
2010 Internatonal European Forum, February 8-12, 2010, Innsbruck-Igls, Austria
100507, International European Forum on Innovation and System Dynamics in Food Networks.
- Declerck, Francis & Viviani, Jean-Laurent, 2012. ""Solvency and Performance of French Wineries in Times of Declining Sales: Co-operatives and Corporations”," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 3(2).
- Hervé Boulhol, 2005.
"The convergence of price-cost margins,"
Cahiers de la Maison des Sciences Economiques
bla05056, Université Panthéon-Sorbonne (Paris 1).
- Afonso, António & Costa, Luís F., 2010.
"Market power and fiscal policy in OECD countries,"
Working Paper Series
1173, European Central Bank.
- Pontuch, Peter, 2011. "Product Market Concentration, Financing Constraints, and Firms' Business Cycle Sensitivity," Economics Papers from University Paris Dauphine 123456789/6271, Paris Dauphine University.
- Alain Gabler, 2008.
"Sector-specific Markup Fluctuations and the Business Cycle,"
2008 Meeting Papers
88, Society for Economic Dynamics.
- Alain Gabler, 2007. "Sector-specific Markup Fluctuations and the Business Cycle," Economics Working Papers ECO2007/25, European University Institute.
- Camille Logeay & Silke Tober, 2003. "Time-varying Nairu and Real Interest Rates in the Euro Area," Discussion Papers of DIW Berlin 351, DIW Berlin, German Institute for Economic Research.
- Maurin, Laurent & Roma, Moreno & Vetlov, Igor, 2011.
"Profit dynamics across the largest euro area countries and sectors,"
Working Paper Series
1410, European Central Bank.
- Laurent Maurin & Moreno Roma & Igor Vetlov, 2011. "Profit Dynamics across the Largest Euro Area countries and Sectors," Bank of Lithuania Working Paper Series 12, Bank of Lithuania.
- Hervé Boulhol, 2005. "Why haven't price-cost margins decreased with globalization ?," Cahiers de la Maison des Sciences Economiques bla06007, Université Panthéon-Sorbonne (Paris 1).
- Holger Görg & Frederic Warzynski, 2003.
"Price Cost Margins and Exporting Behaviour: Evidence from Firm Level Data,"
Discussion Papers of DIW Berlin
365, DIW Berlin, German Institute for Economic Research.
- Holger Gæ””g & Frederic Warzynski, 2003. "Price cost margins and exporting behaviour: Evidence from firm level data," LICOS Discussion Papers 13303, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Hervé Boulhol, 2005. "Pro-competitive policies and the convergence of markups," Post-Print halshs-00193915, HAL.
- Hervé Boulhol, 2005. "The convergence of price-cost margins," Post-Print halshs-00195890, HAL.
- Ali Abcha, 2014. "Imperfect competition, government spending and estimated markup," EconomiX Working Papers 2014-11, University of Paris West - Nanterre la Défense, EconomiX.
- Luís Costa, 2006. "Entry and fiscal policy effectiveness in a small open economy within a Monetary Union," Portuguese Economic Journal, Springer, vol. 5(1), pages 45-65, May.
- Hervé Boulhol, 2006. "Why Haven't Price-Cost Margins Decreased with Globalization ?," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00084267, HAL.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.