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Empirical estimation of market power in Greece

Michael Polemis ()

Applied Economics Letters, 2014, vol. 21, issue 11, 747-750

Abstract: The aim of this study is to estimate industry markups for 2-digit Greek manufacturing and services industries over the period 1970 to 2007. The empirical model estimates the markups following the Roeger (1995) methodology, separately for the two industries by using two different panel data econometric techniques. The results are robust revealing that Greek manufacturing and services industry operate in noncompetitive conditions. The findings also support the view that markup ratios vary significantly between the two industries, with services having higher markups than manufacturing.

Date: 2014
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