Markups Across Space and Time
Sergio Rebelo () and
Arlene Wong ()
No 24434, NBER Working Papers from National Bureau of Economic Research, Inc
In this paper, we provide direct evidence on the behavior of markups in the retail sector across space and time. Markups are measured using gross margins. We consider three levels of aggregation: the retail sector as a whole, the ﬁrm level, and the product level. We ﬁnd that: (1) markups are relatively stable over time and mildly procyclical; (2) there is large regional dispersion in markups; (3) there is positive cross-sectional correlation between local income and local markups; and (4) diﬀerences in markups across regions are explained by diﬀerences in assortment within each goods category, not by deviations from uniform pricing. We propose an endogenous assortment model consistent with these facts.
JEL-codes: E3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-ure
Note: EFG ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:24434
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().