Relative prices and concentration in the Brazilian industry: analysis of the expansion and retraction phases of economic activity from 1974 to 1994

Claudio Seiji Sato ()

Brazilian Journal of Political Economy, 1996, vol. 16, issue 1, 152-161

Abstract: This paper examines the relative price’s behavior of the Brazilian industry in thephases of expansion and retraction of the economic activity level between 1974-1994. Theresults suggest that relative prices of the oligopolistic sector accelerate more (less) in periodsof recession (expansion) then the competitive sector. The main conclusion is that given thedifferentiated behavior in the price and low competition of the majority of the Brazilianindustry, it is likely that the recession result of a restrict economic policy will be absorbed bythe competitive sector “in favour” of the oligopolistic sector. JEL Classification: L13; D43.

Keywords: Relative prices; inflation; competition; oligopoly (search for similar items in EconPapers)
Date: 1996
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