Demand, supply and markup fluctuations

Detalhes bibliográficos
Autor(a) principal: Santos, Carlos D.
Data de Publicação: 2018
Outros Autores: Costa, Luís F., Brito, Paulo
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/16022
Resumo: Markup cyclicality has been central for debating policy effectiveness and understanding business cycle fluctuations. However, there are two empirical challenges: separating supply (TFP) from demand shocks, and properly measuring the markups. In this article, we use a panel of Portuguese manufacturing firms for 2004-2014. Since it contains information on product- level prices, we can separate supply from demand shocks. We overcome the markup measurement by using the share of intermediate inputs on revenues, instead of the labor share. Our results suggest that markups are pro-cyclical with TFP shocks, and counter-cyclical with demand shocks. We also show that labor-based markups are pro-cyclical.
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spelling Demand, supply and markup fluctuationsMarkupsDemand ShocksTFP shocksMarkup cyclicality has been central for debating policy effectiveness and understanding business cycle fluctuations. However, there are two empirical challenges: separating supply (TFP) from demand shocks, and properly measuring the markups. In this article, we use a panel of Portuguese manufacturing firms for 2004-2014. Since it contains information on product- level prices, we can separate supply from demand shocks. We overcome the markup measurement by using the share of intermediate inputs on revenues, instead of the labor share. Our results suggest that markups are pro-cyclical with TFP shocks, and counter-cyclical with demand shocks. We also show that labor-based markups are pro-cyclical.ISEG - REM - Research in Economics and MathematicsRepositório da Universidade de LisboaSantos, Carlos D.Costa, Luís F.Brito, Paulo2018-10-01T12:10:33Z2018-062018-06-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/16022engSantos, Carlos D., Luís F. Costa e Paulo Brito (2018). "Demand, supply and markup fluctuations". Instituto Superior de Economia e Gestão – REM Working paper nº 041 - 20182184-108Xinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:45:53Zoai:www.repository.utl.pt:10400.5/16022Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:01:31.901246Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Demand, supply and markup fluctuations
title Demand, supply and markup fluctuations
spellingShingle Demand, supply and markup fluctuations
Santos, Carlos D.
Markups
Demand Shocks
TFP shocks
title_short Demand, supply and markup fluctuations
title_full Demand, supply and markup fluctuations
title_fullStr Demand, supply and markup fluctuations
title_full_unstemmed Demand, supply and markup fluctuations
title_sort Demand, supply and markup fluctuations
author Santos, Carlos D.
author_facet Santos, Carlos D.
Costa, Luís F.
Brito, Paulo
author_role author
author2 Costa, Luís F.
Brito, Paulo
author2_role author
author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Santos, Carlos D.
Costa, Luís F.
Brito, Paulo
dc.subject.por.fl_str_mv Markups
Demand Shocks
TFP shocks
topic Markups
Demand Shocks
TFP shocks
description Markup cyclicality has been central for debating policy effectiveness and understanding business cycle fluctuations. However, there are two empirical challenges: separating supply (TFP) from demand shocks, and properly measuring the markups. In this article, we use a panel of Portuguese manufacturing firms for 2004-2014. Since it contains information on product- level prices, we can separate supply from demand shocks. We overcome the markup measurement by using the share of intermediate inputs on revenues, instead of the labor share. Our results suggest that markups are pro-cyclical with TFP shocks, and counter-cyclical with demand shocks. We also show that labor-based markups are pro-cyclical.
publishDate 2018
dc.date.none.fl_str_mv 2018-10-01T12:10:33Z
2018-06
2018-06-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/16022
url http://hdl.handle.net/10400.5/16022
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Santos, Carlos D., Luís F. Costa e Paulo Brito (2018). "Demand, supply and markup fluctuations". Instituto Superior de Economia e Gestão – REM Working paper nº 041 - 2018
2184-108X
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv ISEG - REM - Research in Economics and Mathematics
publisher.none.fl_str_mv ISEG - REM - Research in Economics and Mathematics
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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