全球智库信息集成服务系统(G2TT): DP8290 Price-Cost Margins and Shares of Fixed Factors

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP8290
	DP8290 Price-Cost Margins and Shares of Fixed Factors
	Jozef Konings; Werner Roeger; Liqiu Zhao
发表日期	2011-03-14
出版年	2011
语种	英语
摘要	Reduced form approaches to estimate markups typically exploit variation in observed input and output. However, these approaches ignore the presence of fixed input factors, which may result in an overestimation of the price-cost margins. We first propose a new methodology to simultaneously estimate price-cost margins and the shares of fixed inputs. We then use Belgian firm level data for manufacturing and service sectors to show that markups are lower when taking into account fixed input factors. We find that the average price-cost margin of manufacturing firms is 0.041, compared to 0.090 when we do not control for fixed costs of production. We also show that price-cost margins increase with the share of fixed costs in turnover. Our findings provide new insights about observed high price-cost margins in service industries. In particular, we show that once fixed costs are taken into account, price-cost margins in service industries are comparable to those in manufacturing.
主题	Industrial Organization
关键词	Fixed input costs Price-cost margins Solow residual
URL	https://cepr.org/publications/dp8290
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/537126
推荐引用方式 GB/T 7714	Jozef Konings,Werner Roeger,Liqiu Zhao. DP8290 Price-Cost Margins and Shares of Fixed Factors. 2011.