- Additional Authors
- Scarpetta, Stefano.
- Found In
- OECD Economic Studies Vol. 2002, no. 1, p. 173-188 1609-7491
- Description
- 27 p.
- Summary
- This paper presents estimates of the cyclical fluctuations of price-cost margins, following an extended version of the Rotemberg and Woodford (1991) approach. The results support the hypothesis of counter-cyclical price margins in most manufacturing industries, especially in the presence of downward rigidities of labour inputs. This is consistent with a growing body of empirical literature showing that economic booms tend to increase competition or decrease the incentives for collusion, thereby creating downward pressures on price margins. It also offers an appealing interpretation of the otherwise puzzling pro-cyclicality of real wages.
- Subject
- Economics
- LCCN
- 10.1787/eco_studies-v2002-art6-en
- OCLC
- oecd-lib-004523
- Author
Oliveira Martins, Joaquim.
- Title
Estimation of the Cyclical Behaviour of Mark-ups [electronic resource]: A Technical Note / Joaquim Oliveira Martins and Stefano Scarpetta
- Imprint
Paris : OECD Publishing, 2003.
- Connect to:
- Indexed Term
Economics
- Added Author
Scarpetta, Stefano.
- Found In:
OECD Economic Studies Vol. 2002, no. 1, p. 173-188 2002:1<173 1609-7491
- Other Editions:
Estimation du comportement cyclique des taux de marge : Une note technique fre (FR-PaOEC)eco_studies-v2002-art6-fr
- Other Standard Identifier
10.1787/eco_studies-v2002-art6-en doi