Raurich, Xavier; Sala, Hector; Sorolla, Valeri - In: Journal of Macroeconomics 34 (2012) 1, pp. 181-198
the product market, and provides estimates of the elasticity of substitution under such product market imperfections. We … focus on Spain and the US and show that the elasticity of substitution is above one in Spain and below one in the US. We … also show that the price markup drives the elasticity of substitution away from one, upwards in Spain, downwards in the US …