Markups’ cyclical behaviour: the role of demand and supply shocks

António Afonso, João Tovar Jalles

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


We assess how demand and supply shocks (identified via the Blanchard and Quah (1989) structural vector autoregression approach) in 14 OECD countries affect markups. We find that individual responses of markups to demand shocks push down the markup for most countries (confirmed in the panel analysis). On the other hand, a supply shock has a more mixed effect.

Original languageEnglish
Pages (from-to)1-5
Number of pages5
JournalApplied Economics Letters
Issue number1
Publication statusPublished - 2 Jan 2016


  • Blanchard–Quah
  • impulse response function
  • local projection
  • markup
  • VAR


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