Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/50884
Authors: 
Müller, Christian
Year of Publication: 
2004
Series/Report no.: 
Arbeitspapiere // Konjunkturforschungsstelle, Eidgenössische Technische Hochschule Zürich 86
Abstract: 
We investigate how firms' market power affects the price level. In our small macro-model we show, that firms - in addition to hypothesised structural mark-up pricing power - may take advantage of favourable business cycle fluctuations. The paper provides empirical evidence for both these propositions to hold. To show this, we estimate the model in a multivariate time series framework with double integrated variables. We can derive a model based business cycle indicator which compares very well with exogenous survey data information.
Subjects: 
mark-up pricing
monopolistic competition
business cycle indicators
I(2) cointegration
multivariate time series analysis
JEL: 
C32
D40
E31
E32
Document Type: 
Working Paper

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