Monopolistic competition in Switzerland and mark-up pricing over the business cycle

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: KOF Working Papers ; No. 86

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Market Structure, Pricing, and Design: General ; Price Level; Inflation; Deflation ; Business Fluctuations; Cycles
• Subject: mark-up pricing ; monopolistic competition ; business cycle indicators ; I(2) cointegration ; multivariate time series analysis ; Monopolistischer Wettbewerb ; Mark-up Pricing ; Betriebliche Preispolitik ; Konjunkturindikator ; Kointegration ; Multivariate Analyse ; Schweiz

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Müller, Christian
• Event: Veröffentlichung
• (who): ETH Zurich, KOF Swiss Economic Institute
• (where): Zurich
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/50884
• Last update: 10.03.2025, 11:42 AM CET