Aviso: Se está a ler esta mensagem, provavelmente, o browser que utiliza não é compatível com os "standards" recomendados pela W3C. Sugerimos vivamente que actualize o seu browser para ter uma melhor experiência de utilização deste "website". Mais informações em

Warning: If you are reading this message, probably, your browser is not compliant with the standards recommended by the W3C. We suggest that you upgrade your browser to enjoy a better user experience of this website. More informations on


Markups, Fluctuations, and Financial Frictions (MUFFINs)


    We study the relationship between monopoly power and aggregate fluctuations by responding three research questions:

    1. How do markups react to demand and productivity shocks? We explore microeconomic databases where price and quantity information are used to identify both productivity and demand shocks. We also study the mismeasurement problem of using the labour share as a proxy for markups.
    2. How are firms' pricing and markup decisions influenced by their financial strength? We use the results produced by the response to (1) and the financial information available. We test existing theories for markup fluctuations based upon corporate-finance explanations.
    3. Can counter-cyclical markups induce singular dynamics at the macroeconomic level? We use recent methods from applied mathematics in a standard dynamic general equilibrium model with an endogenous markup generated by Cournot competition and entry. Finally, our results can be used for policy be it fiscal, monetary or regulatory.

    Financial support by FCT - Portuguese National Funding Agency for Science, Research and Technology is gratefully acknowledged. Research grant PTDC/EGE-ECO/28814/2017.

    Participating institutions



    • Santos, C., Costa, L., & Brito, P. (2018). Demand, Supply and Markup FluctuationsREM Working Papers 041.
    • Brito, P., Costa, L., Custódio, C. & Santos, C. (2020). How Do Firms React to Demand and Productivity Shocks? The efects of financial strength on price and markup responses. Ready for dissemination soon.
    • Brito, P., Costa, L. & Dixon, H. (2020). To Infinity and Beyond: Singular macroeconomic dynamics and temporary (in)determinacy. Ready for dissemination soon.

    Graduate supervision

    PhD students

    • Faustino, R. (2020). Essays in Macroeconomics. PhD in Economics, ISEG - ULisboa. Supervisor: Luís F. Costa. Status: waiting for viva.

    MSc students



    • 2019-09-13 - 7th UECE Conference on Economic and Financial Adjustments, ISEG - Lisbon School of Economics & Management - Brito, Costa & Dixon.
    • 2019-07-19 - 13th Annual Meeting of the Portuguese Economic Journal, University of Évora - Brito, Costa & Dixon.