Interpreting markups in Spanish manufacturing: the exponential model
-
Lourdes Moreno Martín
1
- Luis C. Corchon 2
-
1
Universidad Complutense de Madrid
info
-
2
Universidad Carlos III de Madrid
info
Argitaletxea: Springer
ISBN: 978-3-319-29253-3
Argitalpen urtea: 2016
Mota: Liburuko kapitulua
Laburpena
In this paper we attempt to rationalize markups in a sample of Spanish manufacturing by assuming a representative consumer, proft-maximizing firms and constant returns to scale. We find that the standard forms of demand (CES and linear) do not provide a good explanation of markups. In contrast, a model where the representative consumer has an exponential utility function yields results that match data more closely.
Erreferentzia bibliografikoak
- Bresnahan, T. F., (1989). "Empirical Studies of Industries with MarketPower" in Schmalensee, R. and Willig, R. D. (eds.), Handbook of IndustrialOrganization, (North-Holland, New York).
- Corchón, L. (1994). "Comparative Statics for Aggregative Games: TheStrong Concavity Case", Mathematical Social Sciences, 28, 151-165
- De Loecker, J, and F. Warzynski (2009). "Markups and Firm-Level ExportStatus" NBER Working Papers, 15198.
- Feenstra, R., and H. L. Kee (2008). "Export Variety and Country Produc-tivity: Estimating the Monopolistic Competition Model with EndogenousProductivity", Journal of International Economics 74, 500–18.
- Hall, R.E. (1988): “The Relation between Price and Marginal Cost in theUS Industry”, Journal of Political Economy 96, 921-947.
- Kimw, D-W and C. R. Knittel (2006). "Biases in Static Oligopoly ModelEvidence from the California Electricity Market", The Journal of IndustrialEconomics, 54, 4, 451-470.
- Kolm, S.C.(1976a): “Unequal inequalities I,”Journal of Economic Theory12, 416-442.
- Kolm, S.C.(1976b): “Unequal inequalities II,”Journal of Economic Theory13, 82-111.
- Konings, J. and H. Vandenbussche (2005a). “Antidumping Protection andMarkups of Domestic Firms”, Journal of International Economics, 65, 151-165.
- Konings, J, P. Van Cayseele and F. Warzybski (2005b). “The E¤ects of Pri-vatization and Competitive Pressure on Firms’Price-Cost Margins: MicroEvidence for Emerging Economies”, The Review of Economics and Statis-tics, 87 (1), 124-134.
- Levinsohn, J. and A. Petrin (2003). “Estimating Production Functions Us-ing Inputs to Control for Unobservables”, Review of Economic Studies,70(2), 317-341
- Lucas, R. (1985). Models of Business Cycles. Yrjo Jahnsson Lectures. Ox-ford, Basil Blackwell.
- Melitz, M. and G. Ottaviano (2008). "Market Size, Trade, and Productiv-ity", Review of Economic Studies (2008) 75, 295–316.
- Miravete, E. and L.-H Röller (2004). "Estimating Price-cost Markups Un-der Nonlinear Pricing Competition", Journal of the European EconomicAssociation, 2, 2/3, 526-535.
- Moreno, L. and D. Rodríguez (2010a). “Export Activity, Persistence andMarkups”, Applied Economics, 42, 475-488.
- Moreno, L. & D. Rodríguez (2010b). "Markups, Bargaining Power andO¤shoring: An Empirical Assessment", MPRA Paper, No23587.
- Olley, G. and A. Pakes (1996). “The Dynamics of Productivity in theTelecommunications Equipment Industry”, Econometrica 64, 6, 1263-1297.
- Pollak, R. (1971). "Additive Utility Functions and Linear Engel Curves",Review of Economic Studies, 38, 116, 401-414
- Pratt, J, W. (1964). "Risk Aversion in the Small and the Large". Econo-metrica 32, 1-2, 122-136.
- Roeger, W. (1995). “Can Imperfect Competition Explain the Di¤erencebetween Primal and Dual Productivity Measures? Estimates for U.S. Man-ufacturing", Journal of Political Economy, 103, 2, 316-330.
- Segura, J., J.C. Fariñas, J. Jaumandreu, C. Martín, J. L. Calvo, J.MaLabeaga, MaJ. Lorenzo, E. Huergo, A. Martín Marcos, J. Velázquez, C.de la Iglesia, E. Martínez and D. Rodríguez (1992). Un Panorama de laIndustria Española. MICYT. Madrid.
- Silvestre, J. (1977). "A Model of General Equilibrium with MonopolisticBehaviour". Journal of Economic Theory 16 , 425-442.
- Sonnenschein, H. (1972). "Market Excess Demand Functions". Economet-rica 40, 3, 549–563.
- Sutton, J. (1991). Sunk Costs and Market Structure. MIT Press, London,1991
- Spence, M., 1976. "Product Selection, Fixed Costs, and Monopolistic Com-petition", Review of Economic Studies, 43, 217-235.