Centre for Finance, Credit and Macroeconomics (CFCM)

CFCM Seminar: Basile Grassi (Boconni University)

A1 Law and Social Sciences Building
Thursday 25th November 2021 (14:00-15:00)

Bottom-up markup fluctuations (with Ariel Burstein and Vasco M. Carvalho)

Abstract:  We study markup cyclicality in a granular macroeconomic model with oligopolistic competition. We characterize the comovement of firm, sectoral, and economy-wide markups with sectoral and aggregate output following firm-level shocks. We then quantify the model’s ability to reproduce salient features of the cyclical properties of markups in French administrative firm-level data, from the bottom (firm) level to the aggregate level. Our model helps rationalize various, seemingly conflicting, measures of markup cyclicality in the French data.

Centre for Finance, Credit and Macroeconomics

Sir Clive Granger Building
University of Nottingham
University Park
Nottingham, NG7 2RD

Enquiries: hilary.hughes@nottingham.ac.uk