Interpreting markups in Spanish manufacturing: The exponential model

Luis Corchon and Lourdes Moreno

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Markups; Exponential utility function (search for similar items in EconPapers)
JEL-codes: L13 L60 (search for similar items in EconPapers)
Date: 2010-11-02
New Economics Papers: this item is included in nep-bec
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Interpreting markups in Spanish manufacturing: the exponential model (2010)
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