• Media type: E-Book
  • Title: Decomposing the Rise in Markups
  • Contributor: van Vlokhoven, Has [Author]
  • Published: [S.l.]: SSRN, [2021]
  • Extent: 1 Online-Ressource (22 p)
  • Language: English
  • DOI: 10.2139/ssrn.3874191
  • Identifier:
  • Keywords: Markups ; Market Power ; Decomposition ; Reallocation
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 28, 2021 erstellt
  • Description: An increase in the aggregate markup can be due to both firm-level markups increasing and economic activity reallocating toward high-markup firms. I show that standard decomposition methods estimate a non-zero reallocation effect even when the allocation does not change and that this bias is potentially large. In opposite to the existing literature, I find that reallocation does not seem to be the major driver of the rise in markups among Compustat firms
  • Access State: Open Access