Price filter: a sectoral profit tracking algorithm
This article resumes the author’s Ph.D. thesis main aspects and results. It presents
an algorithm which enables one to measure sectorial mark-ups variations not using
accounting data from firms. That instrument has the capability of discounting the impact of
variations in relative prices and in productivity for inputs, from the variation of final prices
of sector. The testing of the algorithm revealed a clear positive correlation between mark-up
variations and degree of industrial concentration, higher and more significant in the recession
period (1980-1983) than in the growth one (1977-1980).
JEL Classification: E31; C67.
Keywords: Relative prices price determination profit margins