Measurement of the market power of firms: The Japanese case in the 1990s

Kozo Kiyota, Takanobu Nakajima, Kiyohiko G. Nishimura

Research output: Contribution to journalArticle

8 Citations (Scopus)

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 languageEnglish
Pages (from-to)381-414
Number of pages34
JournalIndustrial and Corporate Change
Volume18
Issue number3
DOIs
Publication statusPublished - 2009

Fingerprint

Market power
Markup
Japanese firms
Retail trade
Manufacturing
Econometrics
Price changes
Firm heterogeneity
Industry
Procyclicality
Marginal cost

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 journalArticle

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