Markups’ Cyclical Behavior: The role of Demand and Supply Shocks

Antonio Afonso and Joao Jalles

No 2015/08, Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa

Abstract: We assess how demand and supply shocks (identified via the Blanchard and Quah (1989) SVAR approach) in 14 OECD countries affect mark-ups. We find that individual responses of markups to demand shocks push down the markup for most countries (confirmed in the panel analysis). On the other hand, a supply shock has a more mixed effect.

Keywords: Blanchard-Quah; mark-up; VAR; impulse response function; local projection. (search for similar items in EconPapers)
JEL-codes: C23 E32 E62 (search for similar items in EconPapers)
Date: 2015-05
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Markups' cyclical behaviour: the role of demand and supply shocks (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ise:isegwp:wp082015

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