Markups from inventory data and export intensity

Teodora Borota Milicevic and Mikael Carlsson

In this paper we propose a novel method for the price-cost markup estimation and study the relationship between export intensity and the markup. We impose much less restrictive identifying assumptions on technology and adjustment frictions compared to previous studies and use Swedish firm-level inventory data on finished goods of own production to measure the markup. Furthermore, as we are using data on a quarterly frequency, we are able to provide novel results on the dynamic adjustment of the markup related to changes in export intensity.

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Year of publication:	August 2016
Authors:	Borota Milicevic, Teodora ; Carlsson, Mikael
Publisher:	Uppsala, Sweden : Department of Economics, Uppsala University
Subject:	price markups \| export intensity \| capacity utilization \| exporter pricing \| Export \| Mark-up Pricing \| Mark-up pricing \| Preismanagement \| Pricing strategy \| Außenhandelspreis \| Foreign trade price \| Preiskonvergenz \| Price convergence \| Schätzung \| Estimation \| Industrie \| Manufacturing industries \| Produktionskapazität \| Production capacity \| Kapazitätsauslastung \| Capacity utilization