Profit Dynamics across the Largest Euro Area countries and Sectors
This paper explores the behavior of profits in the four largest euro area countries (Germany, France, Italy and Spain) and the euro area as a whole, while at the same time considering three main sectors (manufacturing, construction and services) in each economy over the period 1988–2010. The paper presents stylized facts about profit developments and, applying a vector autoregressive modeling framework, discusses the sensitivity of profits to four distinctive structural shocks (a demand shock, an employment shock, a wage and price mark-up shocks). In addition, it provides the shock decomposition of historical developments in profits across countries and sectors.
|Date of creation:||21 Dec 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 22 40 08
Fax: 22 15 01
Web page: http://www.lbank.lt/
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.:
- Rotemberg, Julio J & Woodford, Michael, 1992.
"Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity,"
Journal of Political Economy,
University of Chicago Press, vol. 100(6), pages 1153-1207, December.
- Julio J. Rotemberg & Michael Woodford, 1989. "Oligopolistic Pricing and the Effects of Aggregate Demand on Economic Activity," NBER Working Papers 3206, National Bureau of Economic Research, Inc.
- Álvarez, L-J. & Bulligan, G. & Cabrero, A. & Ferrara, L. & Stahl, H., 2009.
"Housing cycles in the major euro area countries,"
269, Banque de France.
- Roberto Torrini, 2005.
"Profit share and returns on capital stock in Italy: the role of privatisations behind the rise of the 1990s,"
LSE Research Online Documents on Economics
19915, London School of Economics and Political Science, LSE Library.
- Roberto Torrini, 2005. "Profit Share and Returns on Capital Stock in Italy: the Role of Privatisations behind the Rise of the 1990s," CEP Discussion Papers dp0671, Centre for Economic Performance, LSE.
- Thomas Y. MATHA & Olivier PIERRARD, 2009.
"Search in the Product Market and the Real Business Cycle,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2009019, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Mathä, Thomas Y. & Pierrard, Olivier, 2011. "Search in the product market and the real business cycle," Journal of Economic Dynamics and Control, Elsevier, vol. 35(8), pages 1172-1191, August.
- Mathä, Thomas Y. & Pierrard, Olivier, 2009. "Search in the product market and the real business cycle," Working Paper Series 1036, European Central Bank.
- Thomas Y. Mathä & Olivier Pierrard, 2008. "Search in the product market and the real business cycle," BCL working papers 32, Central Bank of Luxembourg.
- Martin, Christopher, 1993. "Price adjustment and market structure," Economics Letters, Elsevier, vol. 41(2), pages 139-143.
- Weitzman, Martin L, 1982. "Increasing Returns and the Foundations of Unemployment Theory," Economic Journal, Royal Economic Society, vol. 92(368), pages 787-804, December.
- Dixit, Avinash K & Stiglitz, Joseph E, 1975.
"Monopolistic Competition and Optimum Product Diversity,"
The Warwick Economics Research Paper Series (TWERPS)
64, University of Warwick, Department of Economics.
- Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
- Runkle, David E, 1987. "Vector Autoregressions and Reality," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(4), pages 437-42, October.
- Rebekka Christopoulou & Philip Vermeulen, 2012.
"Markups in the Euro area and the US over the period 1981–2004: a comparison of 50 sectors,"
Springer, vol. 42(1), pages 53-77, February.
- Christopoulou, Rebekka & Vermeulen, Philip, 2008. "Markups in the euro area and the US over the period 1981-2004: a comparison of 50 sectors," Working Paper Series 0856, European Central Bank.
- Gali Jordi, 1994.
"Monopolistic Competition, Business Cycles, and the Composition of Aggregate Demand,"
Journal of Economic Theory,
Elsevier, vol. 63(1), pages 73-96, June.
- Gali, J., 1991. "Monopolistic Competition, Business Cycles and the Composition of Aggregate Demand," Papers 92-03, Columbia - Graduate School of Business.
- Jordi Galí, 1993. "Monopolistic competition, business cycles and the composition of aggregate demand," Economics Working Papers 45, Department of Economics and Business, Universitat Pompeu Fabra.
- Katharine S. Neiss, 2001. "The markup and inflation: evidence in OECD countries," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 570-587, May.
- Satyajit Chatterjee & Russell W. Cooper & B. Ravikumar, 1993.
"Strategic complementarity in business formation: aggregate fluctuations and sunspot equilibria,"
93-9, Federal Reserve Bank of Philadelphia.
- Chatterjee, Satyajit & Cooper, Russell & Ravikumar, B, 1993. "Strategic Complementarity in Business Formation: Aggregate Fluctuations and Sunspot Equilibria," Review of Economic Studies, Wiley Blackwell, vol. 60(4), pages 795-811, October.
- Julio J. Rotemberg & Michael Woodford, 1991. "Markups and the Business Cycle," NBER Chapters, in: NBER Macroeconomics Annual 1991, Volume 6, pages 63-140 National Bureau of Economic Research, Inc.
- David E. Runkle, 1987. "Vector autoregressions and reality," Staff Report 107, Federal Reserve Bank of Minneapolis.
- Christopher J. Nekarda & Valerie A. Ramey, 2013. "The Cyclical Behavior of the Price-Cost Markup," NBER Working Papers 19099, National Bureau of Economic Research, Inc.
- Macallan, Clare & Millard, Stephen & Parker, Miles, 2008. "The cyclicality of mark-ups and profit margins for the United Kingdom: some new evidence," Bank of England working papers 351, Bank of England.
- McDonald, James Ted, 1999. "The Determinants of Firm Profitability in Australian Manufacturing," The Economic Record, The Economic Society of Australia, vol. 75(229), pages 115-26, June.
- Jose C. Farinas & Elena Huergo, 2003. "Profit Margins, Adjustment Costs and the Business Cycle: An Application to Spanish Manufacturing Firms," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(1), pages 49-72, February.
- Runkle, David E, 1987. "Vector Autoregressions and Reality: Reply," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(4), pages 454, October.
- Joaquim Oliveira Martins & Stefano Scarpetta, 2002. "Estimation of the Cyclical Behaviour of Mark-ups: A Technical Note," OECD Economic Studies, OECD Publishing, vol. 2002(1), pages 173-188.
When requesting a correction, please mention this item's handle: RePEc:lie:wpaper:12. 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: (Rasa Puðinskaitë)
If references are entirely missing, you can add them using this form.