The Upward Bias of Markups Estimated from the Price-Based Methodology

Herve Boulhol

Annales d'Economie et de Statistique, 2008, issue 89, pages 131-156

Abstract: Previous studies have emphasized that Roeger's methodology generates too high markups. This feature is confirmed on the basis of the unrealistically low capital shares implied by the estimates herein. Theoretically, it is shown that the normalization choice, the slow adjustment of capital and the mismeasurement of capital expenditures, each produces an upward bias. Based on the empirical analysis, each of these three sources of overestimation is very likely to play a role.

Date: 2008
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.jstor.org/stable/27715165 (application/pdf)

Related works:
Working Paper: The upward bias of markups estimated from the price-based methodology (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:adr:anecst:y:2008:i:89:p:05

Access Statistics for this article

Annales d'Economie et de Statistique is edited by Robert Gary-Bobo

More articles in Annales d'Economie et de Statistique from ENSAE
Contact information at EDIRC.
Series data maintained by Robert Gary-Bobo ().