The Dynamics of Price Cost Margins: Evidence from UK Manufacturing

Holger Görg and Frédéric Warzynski

Revue de l'OFCE, 2006, vol. 97 bis, issue 5, 303-318

Abstract: This paper estimates the dynamics of price cost margins in UK manufacturing over the period 1989-1997 and links it to the implementation of the Single Market Program. Using the Hall-Roeger methodology, we find a dramatic decline in price cost margins by 25% after 1990. This suggests that firms anticipated the competitive shock induced by the Single Market Program, which created a more competitive environment. JEL Classification: F1, L1, L6.

Keywords: single market program; price cost margins; UK; firm-level data (search for similar items in EconPapers)
JEL-codes: F1 L1 L6 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (17)

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