Autor(es):
Afonso, António 
; Costa, Luís F.
Data: 2010
Identificador Persistente: http://hdl.handle.net/10400.5/2319
Origem: Repositório da UTL
Assunto(s): Fiscal Policy; Mark-up; VAR; Panel VAR
Detalhes do Documento
Market Power and Fiscal Policy in OECD Countries
Descrição
We compute average mark-ups as a measure of market power throughout time and study their interaction with fiscal policy and macroeconomic variables in a VAR framework. From impulse-response functions the results, with annual data for a set of 14 OECD countries covering the period 1970-2007, show that the mark-up (i) depicts a pro-cyclical behaviour with productivity shocks and (ii) a mildly counter-cyclical behaviour with fiscal spending shocks. We also use a Panel Vector Auto-Regression analysis, increasing the efficiency in the estimations, which confirms the country-specific results.
We compute average mark-ups as a measure of market power throughout time and study their interaction with fiscal policy and macroeconomic variables in a VAR framework. From impulse-response functions the results, with annual data for a set of 14 OECD countries covering the period 1970-2007, show that the mark-up (i) depicts a pro-cyclical behaviour with productivity shocks and (ii) a mildly counter-cyclical behaviour with fiscal spending shocks. We also use a Panel Vector Auto-Regression analysis, increasing the efficiency in the estimations, which confirms the country-specific results.
Tipo de Documento
Outro
Idioma Inglês
Idioma Inglês
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