Profit dynamics across the largest euro area countries and sectors

Moreno Roma, Igor Vetlov and Laurent Maurin

No 1410, Working Paper Series from European Central Bank

Abstract: This paper explores the behavior of profits in the four largest euro area countries (Germany, France, Italy and Spain) and the euro area as a whole, while at the same time considering three main sectors (manufacturing, construction and services) in each economy over the period 1988–2010. The paper presents stylized facts about profit developments and, applying a vector autoregressive modeling framework, discusses the sensitivity of profits to four distinctive structural shocks (a demand shock, an employment shock, a wage and price mark-up shocks). In addition, it provides the shock decomposition of historical developments in profits across countries and sectors. JEL Classification: C32, E23, E25

Keywords: historical decomposition; Impulse responses; Profits; sectoral determinants; VARs (search for similar items in EconPapers)
Date: 2011-12
New Economics Papers: this item is included in nep-eec
Note: 337417
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Profit Dynamics across the Largest Euro Area countries and Sectors (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20111410

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