| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP16796 |
| DP16796 Price-Cost Margins and Fixed Costs | |
| Filip Abraham; Yannick Bormans; Jozef Konings | |
| 发表日期 | 2021-12-09 |
| 出版年 | 2021 |
| 语种 | 英语 |
| 摘要 | This paper provides a new method to estimate price-cost margins in the presence of fixed costs of production. We exploit properties of the primal and dual revenue based and cost based Solow residual. Ignoring fixed costs in production underestimates price-cost margins and overestimates excess profit margins. Using a 30 year panel of Belgian firms we estimate price cost margins of 25.9% on average, with fixed costs as a fraction of sales of 23.4%. Fixed costs as well as price-cost margins have declined in the last three decades, pushing excess profit margins close to zero, suggesting competitive markets. The presence of fixed costs implies that price-cost margins might change not only due to a change in firms’ market power, but also due to changes in the production process (i.e., the mix between variable and fixed costs) or even due to a combination of both. Our novel methodology is able to distinguish these underlying mechanisms, thereby providing an additional layer of insight to the ongoing academic and policy debate on firms’ market power. |
| 主题 | Industrial Organization |
| 关键词 | Price-cost margins Fixed costs Excess profits market power |
| URL | https://cepr.org/publications/dp16796 |
| 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/545728 |
| 推荐引用方式 GB/T 7714 | Filip Abraham,Yannick Bormans,Jozef Konings. DP16796 Price-Cost Margins and Fixed Costs. 2021. |
| 条目包含的文件 | 条目无相关文件。 | |||||
除非特别说明，本系统中所有内容都受版权保护，并保留所有权利。
