In this paper we attempt to rationalize markups in a sample of Spanish manufacturing by assuming a representative consumer, pro t-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,...

The authors investigate the differences in margins of export and domestic markets for Spanish manufacturing firms in the period 1990 to 1997. They estimate jointly a multiproduct cost function, a variable factor share equation, and two price/marginal-cost margin equations. The results indicate...