The fall and rise of market power in Europe
John P. Weche and
Achim Wambach ()
No 379, Working Paper Series in Economics from University of Lüneburg, Institute of Economics
This paper presents an analysis of the recent developments of average market power in Europe by using a broad firm-level database for EU member states. To indicate competitive pressure at the firm-level, markups are estimated following De Loecker (2011), and De Loecker and Warzynski (2012). The analysis reveals a sharp drop in markups during the crisis, followed by a post-crisis increase. The European average has not yet reached its pre-crisis level, which is in contrast to results for the US, where average markups have climbed to pre-crisis levels already in 2011. There is significant heterogeneity among European economies and the pre-crisis levels do have been exceeded in some countries.
Keywords: Market Power; Markups; Europe; Crisis (search for similar items in EconPapers)
JEL-codes: E2 D2 D4 L1 (search for similar items in EconPapers)
Pages: 29 pages
New Economics Papers: this item is included in nep-com, nep-eff, nep-eur, nep-ind and nep-mac
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Working Paper: The fall and rise of market power in Europe (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:lue:wpaper:379
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