Discussion Paper Details

Please find the details for DP15360 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Bottom-up Markup Fluctuations

Author(s): Ariel Tomas Burstein, Vasco M Carvalho and Basile Grassi

Publication Date: October 2020

Keyword(s): Aggregate fluctuations, Firm Dynamics, granularity, Markup Cyclicality and Oligopolistic Competition

Programme Area(s): Industrial Organization and Monetary Economics and Fluctuations

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.

For full details and related downloads, please visit:

Bibliographic Reference

Burstein, A, Carvalho, V and Grassi, B. 2020. 'Bottom-up Markup Fluctuations'. London, Centre for Economic Policy Research.