Price filter: a sectoral profit tracking algorithm

Vol. 15 No. 4 (1995)

Oct-Dec / 1995
Published October 1, 1995
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Travassos, Fernando Cariola. 1995. “Price Filter: A Sectoral Profit Tracking Algorithm”. Brazilian Journal of Political Economy 15 (4):536-46.

Price filter: a sectoral profit tracking algorithm

Fernando Cariola Travassos
Economista do Banco Nacional de Desenvolvimento Social – BNDES. Atualmente assessor econômico da Secretaria de Orçamento Federal do Ministério do Planejamento e Orçamento, Brasilia/DF.
Brazilian Journal of Political Economy, Vol. 15 No. 4 (1995), Oct-Dec / 1995, Pages 536-546


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