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 - 2009/6/15
Y1 - 2009/6/15
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.
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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 -