Bottom-up Markup Fluctuations

Basile Grassi, Ariel Tomas Burstein and Vasco Carvalho

No 15360, CEPR Discussion Papers from Centre for Economic Policy Research

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)
JEL-codes: D21 D22 D24 D43 E32 L11 L13 (search for similar items in EconPapers)
Date: 2020-10
New Economics Papers: this item is included in nep-bec, nep-com and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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Related works:
Journal Article: Bottom-Up Markup Fluctuations* (2025)
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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