Abstract
This article presents a new simple econometric framework for the estimation of individual firms' markup over their marginal cost, taking account of firm heterogeneity, demand-driven cyclical price changes, and the limited availability of firm-level information. The framework is applied to study markup of Japanese firms in manufacturing and wholesale/ retail trade for 1994-2002. The results indicate that, on average, the Japanese markets become more competitive in the 1990s than before even in non-manufacturing industries. We also find sizable heterogeneity and non-negligible pro-cyclicality in the markup of the Japanese firms.
| Original language | English |
|---|---|
| Pages (from-to) | 381-414 |
| Number of pages | 34 |
| Journal | Industrial and Corporate Change |
| Volume | 18 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2009 |
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ASJC Scopus subject areas
- Economics and Econometrics
Cite this
Measurement of the market power of firms : The Japanese case in the 1990s. / Kiyota, Kozo; Nakajima, Takanobu; Nishimura, Kiyohiko G.
In: Industrial and Corporate Change, Vol. 18, No. 3, 2009, p. 381-414.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Measurement of the market power of firms
T2 - The Japanese case in the 1990s
AU - Kiyota, Kozo
AU - Nakajima, Takanobu
AU - Nishimura, Kiyohiko G.
PY - 2009
Y1 - 2009
N2 - This article presents a new simple econometric framework for the estimation of individual firms' markup over their marginal cost, taking account of firm heterogeneity, demand-driven cyclical price changes, and the limited availability of firm-level information. The framework is applied to study markup of Japanese firms in manufacturing and wholesale/ retail trade for 1994-2002. The results indicate that, on average, the Japanese markets become more competitive in the 1990s than before even in non-manufacturing industries. We also find sizable heterogeneity and non-negligible pro-cyclicality in the markup of the Japanese firms.
AB - This article presents a new simple econometric framework for the estimation of individual firms' markup over their marginal cost, taking account of firm heterogeneity, demand-driven cyclical price changes, and the limited availability of firm-level information. The framework is applied to study markup of Japanese firms in manufacturing and wholesale/ retail trade for 1994-2002. The results indicate that, on average, the Japanese markets become more competitive in the 1990s than before even in non-manufacturing industries. We also find sizable heterogeneity and non-negligible pro-cyclicality in the markup of the Japanese firms.
UR - http://www.scopus.com/inward/record.url?scp=66749084423&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=66749084423&partnerID=8YFLogxK
U2 - 10.1093/icc/dtp017
DO - 10.1093/icc/dtp017
M3 - Article
AN - SCOPUS:66749084423
VL - 18
SP - 381
EP - 414
JO - Industrial and Corporate Change
JF - Industrial and Corporate Change
SN - 0960-6491
IS - 3
ER -