Imperfect competition, government spending and estimated markup
This paper is an empirical study that aims at explaining economic fluctuations and behavior mark-up. Inspired by the method of Roeger (1995), we perform a study of four OECD countries (Denmark, Finland, Italy and the United States) for 17 manufacturing industries covering the period 1986-2008. This study provides a comparison between our estimates of mark-up and other observations on mark-up pricing (Oliveira, Scarpetta and Pilat (1996), Roger (1995) and Rotemberg and Woodford (1992)). It also provides an interpretation of the estimated markups that depend on the type of market structure. An application of a VAR model is used to examine the relationship between imperfect competition and the effects fiscal policy on output and mark-up, based on the method of Rotemberg and Woodford (1999).
|Date of creation:||2014|
|Date of revision:|
|Contact details of provider:|| Postal: 200 Avenue de la République, Bât. G - 92001 Nanterre Cedex|
Web page: http://economix.fr
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thomas Seegmuller, 2001.
"Concurrence Imparfaite, Variabilité du Taux de Marge et Fluctuations Endogènes,"
Working Papers of BETA
2001-21, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Thomas Seegmuller, 2003. "Concurrence imparfaite, variabilité du taux de marge et fluctuations endogènes," Recherches économiques de Louvain, De Boeck Université, vol. 69(4), pages 371-386.
- Thomas SEEGMULLER, 2004. "Concurrence imparfaite, variabilité du taux de marge et fluctuations endogènes," Discussion Papers (REL - Recherches Economiques de Louvain) 2003042, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Thomas Seegmuller, 2003. "Concurrence imparfaite, variabilité du taux de marge et fluctuations endogènes," Post-Print halshs-00194124, HAL.
- Afonso, António & Costa, Luís F., 2010.
"Market power and fiscal policy in OECD countries,"
Working Paper Series
1173, European Central Bank.
- Luis F. COSTA & Antonio AFONSO, . "Market Power and Fiscal Policy in OECD Countries," EcoMod2010 259600041, EcoMod.
- António Afonso & Luís Costa, 2010. "Market Power and Fiscal Policy in OECD Countries," Working Papers Department of Economics 2010/11, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Ricardo J. Caballero & Richard K. Lyons, 1989. "The Role of External Economies in U.S. Manufacturing," NBER Working Papers 3033, National Bureau of Economic Research, Inc.
- Marvin Goodfriend & Robert G. King, 1998.
"The new neoclassical synthesis and the role of monetary policy,"
98-05, Federal Reserve Bank of Richmond.
- Marvin Goodfriend & Robert King, 1997. "The New Neoclassical Synthesis and the Role of Monetary Policy," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 231-296 National Bureau of Economic Research, Inc.
- Afonso, António & Furceri, Davide, 2010.
"Government size, composition, volatility and economic growth,"
European Journal of Political Economy,
Elsevier, vol. 26(4), pages 517-532, December.
- Afonso, António & Furceri, Davide, 2008. "Government size, composition, volatility and economic growth," Working Paper Series 0849, European Central Bank.
- António Afonso & Davide Furceri, 2008. "Government Size, Composition, Volatility and Economic Growth," Working Papers Department of Economics 2008/04, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Jordi Galí, 1993.
"Monopolistic competition, endogenous markups and growth,"
Economics Working Papers
44, Department of Economics and Business, Universitat Pompeu Fabra.
- Gali, Jordi, 1994. "Monopolistic competition, endogenous markups, and growth," European Economic Review, Elsevier, vol. 38(3-4), pages 748-756, April.
- Yangru Wu & Junxi Zhang, 2003. "Uniqueness and Stability of Equilibria in a Model with Endogenous Markups and Labor Supply," Annals of Economics and Finance, Society for AEF, vol. 4(1), pages 177-191, May.
- Silvestre, Joaquim, 1993.
"The Market-Power Foundations of Macroeconomic Policy,"
Journal of Economic Literature,
American Economic Association, vol. 31(1), pages 105-41, March.
- Silvestre, J., 1991. "The Market-Power Foundations of Macroeconomic Policy," Papers 374, California Davis - Institute of Governmental Affairs.
- Robert E. Hall, 1986.
"The Relation Between Price and Marginal Cost in U.S. Industry,"
NBER Working Papers
1785, National Bureau of Economic Research, Inc.
- Hall, Robert E, 1988. "The Relation between Price and Marginal Cost in U.S. Industry," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 921-47, October.
- Jang-Ting Guo & Kevin J. Lansing, 1998.
"Optimal taxation of capital income with imperfectly competitive product markets,"
Working Papers in Applied Economic Theory
98-04, Federal Reserve Bank of San Francisco.
- Guo, Jang-Ting & Lansing, Kevin J., 1999. "Optimal taxation of capital income with imperfectly competitive product markets," Journal of Economic Dynamics and Control, Elsevier, vol. 23(7), pages 967-995, June.
- Roeger, Werner, 1995. "Can Imperfect Competition Explain the Difference between Primal and Dual Productivity Measures? Estimates for U.S. Manufacturing," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 316-30, April.
- Judd, Kenneth L., 1999. "Optimal taxation and spending in general competitive growth models," Journal of Public Economics, Elsevier, vol. 71(1), pages 1-26, January.
- Bils, Mark, 1987. "The Cyclical Behavior of Marginal Cost and Price," American Economic Review, American Economic Association, vol. 77(5), pages 838-55, December.
- Joaquim Oliveira Martins & Stefano Scarpetta, 2003. "Estimation of the Cyclical Behaviour of Mark-ups: A Technical Note," OECD Economic Studies, OECD Publishing, vol. 2002(1), pages 173-188.
- Blanchard, Olivier Jean & Kiyotaki, Nobuhiro, 1987. "Monopolistic Competition and the Effects of Aggregate Demand," American Economic Review, American Economic Association, vol. 77(4), pages 647-66, September.
When requesting a correction, please mention this item's handle: RePEc:drm:wpaper:2014-11. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valérie Mignon)
If references are entirely missing, you can add them using this form.