Market power and fiscal policy in OECD countries

Afonso, António; Costa, Luís F.

http://hdl.handle.net/10400.5/2160

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Autores

Afonso, António

Costa, Luís F.

Resumo(s)

We compute average mark-ups as a measure of market power throughout time and study their interaction with fiscal policy and macroeconomic variables in a VAR framework. From impulse-response functions the results, with annual data for a set of 14 OECD countries covering the period 1970-2007, show that the mark-up (i) depicts a pro-cyclical behaviour with productivity shocks and (ii) a mildly counter-cyclical behaviour with fiscal spending shocks. We also use a Panel Vector Auto-Regression analysis, increasing the efficiency in the estimations, which confirms the country-specific results.

Palavras-chave

Fiscal Policy Mark-up VAR Panel VAR

URI

http://hdl.handle.net/10400.5/2160

Citação

Afonso, António, Luís F. Costa. 2010. "Market power and fiscal policy in OECD countries". European Central Bank working paper series nº 1173-2010

Editora

European Central Bank

Coleções

DE - Documentos de trabalho / Working Papers

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