Interpreting markups in Spanish manufacturing: The exponential model

In this paper we attempt to rationalize markups in a sample of Spanish manufacturing by assuming a representative consumer, profit-maximizing firms and constant returns to scale. We find that the standard forms of demand (CES and linear) do not provide a good explanation of markups. In contrast, a model where the representative consumer has an exponential utilty function yields results that match data more closely.

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Year of publication:	2010-11-02
Authors:	Corchón, Luis C. ; Moreno, L.

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Corchón, Luis C. and Moreno, L. (2010): Interpreting markups in Spanish manufacturing: The exponential model.
Classification:	L13 - Oligopoly and Other Imperfect Markets ; L60 - Industry Studies: Manufacturing. General
Source:	BASE

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