全球智库信息集成服务系统(G2TT): DP8900 Prices, Markups and Trade Reform

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP8900
	DP8900 Prices, Markups and Trade Reform
	Pinelopi Goldberg; Nina Pavcnik; Jan De Loecker
发表日期	2012-03-01
出版年	2012
语种	英语
摘要	This paper examines how prices, markups and marginal costs respond to trade liberalization. We develop a framework to estimate markups from production data with multi-product firms. This approach does not require assumptions on the market structure or demand curves faced by firms, nor assumptions on how firms allocate their inputs across products. We exploit quantity and price information to disentangle markups from quantity-based productivity, and then compute marginal costs by dividing observed prices by the estimated markups. We use India?s trade liberalization episode to examine how firms adjust these performance measures. Not surprisingly, we find that trade liberalization lowers factory-gate prices. However, the price declines are small relative to the declines in marginal costs, which fall predominantly because of the input tariff liberalization. The reason is that firms offset their reductions in marginal costs by raising markups. This limited pass-through of cost reductions attenuates the reform?s impact on prices. Our results demonstrate substantial heterogeneity and variability in markups across firms and time and suggest that producers benefited relative to consumers, at least immediately after the reforms. To the extent that higher firm profits lead to the new product introductions and growth, long-term gains to consumers may be substantially higher.
主题	Industrial Organization ; International Trade and Regional Economics
关键词	Markups Productivity Pass-through Input tariffs Trade liberalization
URL	https://cepr.org/publications/dp8900
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/537730
推荐引用方式 GB/T 7714	Pinelopi Goldberg,Nina Pavcnik,Jan De Loecker. DP8900 Prices, Markups and Trade Reform. 2012.