Publicação
Demand, supply and markup fluctuations
| dc.contributor.author | Santos, Carlos D. | |
| dc.contributor.author | Costa, Luis F. | |
| dc.contributor.author | Brito, Paulo | |
| dc.date.accessioned | 2024-03-27T08:53:33Z | |
| dc.date.available | 2024-03-27T08:53:33Z | |
| dc.date.issued | 2016 | |
| dc.description.abstract | The cyclical behavior of markups is at the center of macroeconomic debate on the origins of business-cycle fluctuations and policy effectiveness. In theory, markups may fluctuate endogenously with the business cycle due to sluggish price adjustment or to deeper motives affecting the price-elasticity of demand faced by individual producers. In this article we make use of a large Örm- and product-level panel of Portuguese manufacturing Örms in the 2004-2010 period. The biggest empirical challenge is to separate supply (TFP) from demand shocks. Our dataset allows to do so, by containing information on product-level prices at a yearly frequency. Furthermore, markups are mismeasured when calculated with the labor share. We use the share of intermediate inputs instead. Our main results suggest that markups are pro-cyclical with TFP shocks and generally counter-cyclical with demand shocks. We also show how markups become procyclical if the markup is obtained using the labour share instead of intermediate inputs. Adjustment costs create a wedge between the labour share and the actual markup which explain the observed correlations. | pt_PT |
| dc.description.version | info:eu-repo/semantics/publishedVersion | pt_PT |
| dc.identifier.citation | Santos, Carlos D., Luís F. Costa and Paulo Brito .(2016). "Demand, supply and markup fluctuations". Nova SBE - Working Papers No 609/ 2016. (Search PDF in 2024). | pt_PT |
| dc.identifier.uri | http://hdl.handle.net/10400.5/30487 | |
| dc.language.iso | eng | pt_PT |
| dc.publisher | Nova School of Business Economics (Nova SBE) | pt_PT |
| dc.relation.ispartofseries | Nova SBE - Working Papers No 609/ 2016.; | |
| dc.subject | Markups | pt_PT |
| dc.subject | Demand Shocks | pt_PT |
| dc.subject | TFP Shocks | pt_PT |
| dc.title | Demand, supply and markup fluctuations | pt_PT |
| dc.type | working paper | |
| dspace.entity.type | Publication | |
| rcaap.rights | openAccess | pt_PT |
| rcaap.type | workingPaper | pt_PT |