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.
N1 - Funding Information:
We are grateful to David Greenstreet, Tomohiko Inui, Dale Jorgenson, Gary Solon, and anonymous referees for helpful comments. We also thank Economic and Social Research Institute (ESRI) for its financial supports. Kozo Kiyota acknowledges the financial support from the Japan Society for the Promotion of Science (JSPS) 2006 Postdoctoral Fellowships for Research Abroad. This article is a part of our ongoing joint research at the Manufacturing Management Research Center (MMRC) of the University of Tokyo with Flora Bellone, Patrick Musso, Lionel Nesta, and Michel Quéré of Institut de Droit et d’Economie de la Firme et de l’Industrie. However, the views expressed here are strictly personal and in no way represent those of Bank of Japan, ESRI, Keio University, MMRC-University of Tokyo, or Yokohama National University. The major part of this research was completed before Kiyohiko Nishimura joined the Policy Board of the Bank of Japan.
Copyright:
Copyright 2009 Elsevier B.V., All rights reserved.
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 -