Bottom-up Markup Fluctuations
Carvalho, V. M.
Cambridge Working Papers in Economics
Cambridge-INET Working Paper Series
Faculty of Economics, University of Cambridge
MetadataShow full item record
Burstein, A., Carvalho, V. M., & Grassi, B. (2020). Bottom-up Markup Fluctuations. https://doi.org/10.17863/CAM.62308
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.
Markup Cyclicality, Oligopolistic Competition, Firm Dynamics, Granularity, Aggregate Fluctuations
This record's DOI: https://doi.org/10.17863/CAM.62308
This record's URL: https://www.repository.cam.ac.uk/handle/1810/315199
All Rights Reserved
Licence URL: https://www.rioxx.net/licenses/all-rights-reserved/