Bottom-up Markup Fluctuations

Ariel Burstein, Vasco Carvalho and Basile Grassi

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: We study markup cyclicality in a granular macroeconomic model with oligopolistic competition. We characterize the comovement of firm, sectoral, and economy-wide markups with sectoral and aggregate output following firm-level shocks. We then quantify the model’s ability to reproduce salient features of the cyclical properties of markups in French administrative firm-level data, from the bottom (firm) level to the aggregate level. Our model helps rationalize various, seemingly conflicting, measures of markup cyclicality in the French data.

Keywords: Markup Cyclicality; Oligopolistic Competition; Firm Dynamics; Granularity; Aggregate Fluctuations (search for similar items in EconPapers)
Date: 2020-10-14
New Economics Papers: this item is included in nep-dge and nep-mac
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Citations: View citations in EconPapers (21)

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http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe2096.pdf

Related works:
Working Paper: Bottom-up Markup Fluctuations (2020)
Working Paper: Bottom-up Markup Fluctuations (2020)
Working Paper: Bottom-Up Markup Fluctuations (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:2096

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