Interpreting markups in Spanish manufacturing: the exponential model

Luis Corchon and Lourdes Moreno

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: In this paper we attempt to rationalize markups in a sample of Spanish manufacturing by assuming a representative consumer, profit-maximizing firms and constant returns to scale. We find that the standard forms of demand (CES and linear) do not provide a good explanation of markups. In contrast, a model where the representative consumer has an exponential utilty function yields results that match data more closely.

Date: 2010-11
New Economics Papers: this item is included in nep-bec
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Related works:
Chapter: Interpreting Markups in Spanish Manufacturing: The Exponential Model (2016)
Working Paper: Interpreting markups in Spanish manufacturing: The exponential model (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:we1030

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