00000nam 2200000zi 4500 9.942548 CaOODSP 20240828144721 m o d f cr mn||||||||| 240828t20242024onca ob f000 0 eng d CaOODSP eng rda CaOODSP eng eng fre n-cn--- FB3-5/2024-20E-PDF Alexander, Patrick D., author. Markups and inflation in oligopolistic markets : evidence from wholesale price data / by Patrick Alexander, Lu Han, Oleksiy Kryvtsov and Ben Tomlin. [Ottawa] : Bank of Canada = Banque du Canada, 2024. ©2024 1 online resource (ii, 80, that is, ii, 79 pages) : illustrations (chiefly colour). text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2024-20 ISSN assigned to different series. "Last updated: May 28, 2024." Includes bibliographical references (pages 35-38). "We study how the interaction of market power and nominal price rigidity influences inflation dynamics. We formulate a tractable model of oligopolistic competition and sticky prices and derive closed-form expressions for the pass-through of idiosyncratic and common cost shocks to firms' prices. Using unpublished micro data for Canadian wholesale firms, we estimate that the pass-through of idiosyncratic costs is incomplete at 70% and independent of the degree of sector-price-stickiness. The pass-through of common costs declines with price stickiness, from nearly complete in flexible-price sectors to below 70% in sectors with the stickiest prices. An increase in the degree of sector or firm market power reduces the pass-through of both types of cost shocks. These estimates imply a degree of strategic complementarity that lowers the slope of the New Keynesian Phillips curve by 30% in a one-sector model and by 74% in a multi-sector model"--Abstract, page ii. Includes abstracts in English and French. Inflation (Finance) Canada Econometric models. Wholesale trade Prices Canada Econometric models. Transmission mechanism (Monetary policy) Canada Econometric models. Inflation Canada Modèles économétriques. Commerce de gros Prix Canada Modèles économétriques. Mécanismes de transmission (Politique monétaire) Canada Modèles économétriques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2024-20. (CaOODSP)9.806221 PDF 1.16 MB https://publications.gc.ca/collections/collection_2024/banque-bank-canada/FB3-5-2024-20-eng.pdf