Manufacturing price markup equations are estimated for 15 OECD countries using annual data. Firms have CES production technology. The markup depends on demand, competitors' prices and uncertainty. Cointegration is tested with the Pedroni tests and a panel version of the Johansen test, and...

The paper follows a methodology developed by Schmalensee to decompose the time varying behaviour of price-cost margins into an intra-industry and an inter-industry component. By doing so light can be shed on whether cyclical movements in industry price-cost margins reflect industry effects such...

In recent years it has become common when specifying empirical price cost margins to use net output as opposed to the more usual gross output in the denominator. It has been noted that with gross output as the denominator the point estimate on concentration from a regression of margins on...