NDLI: Markups in the Euro area and the US over the period 1981

Content Provider	Springer Nature Link
Author	Christopoulou, Rebekka Vermeulen, Philip
Copyright Year	2010
Abstract	This article provides estimates of price–marginal cost ratios or mark-ups for 50 sectors in eight Euro area countries and the US over the period 1981–2004. The estimates are obtained applying the methodology developed by Roger (J Polit Econ 103:316–330, 1995) on the EU KLEMS March 2007 database. Five stylized facts are derived. First, perfect competition can be rejected for almost all sectors in all countries; markup ratios are generally larger than 1. Second, average markups are heterogeneous across countries. Third, markups are heterogeneous across sectors, with services having higher markups on average than manufacturing. Fourth, services sectors generally have higher markups in the euro area than the US, whereas the pattern for manufacturing is the reverse. Fifth, there is no evidence that there is a broad range change in markups from the 1980s to the 1990s.
Starting Page	53
Ending Page	77
Page Count	25
File Format	PDF
ISSN	03777332
Journal	Empirical Economics
Volume Number	42
Issue Number	1
e-ISSN	14358921
Language	English
Publisher	Springer-Verlag
Publisher Date	2010-12-19
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Price Marginal cost Markup Economic Theory Economics general Econometrics Statistics for Business/Economics/Mathematical Finance/Insurance
Content Type	Text
Resource Type	Article
Subject	Statistics and Probability Social Sciences Economics and Econometrics

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