Markups and Firm-Level Export Status: Comment

Zhongqi Deng () and Yongjun Chen

MPRA Paper from University Library of Munich, Germany

Abstract: This paper reviews a recent paper by De Loecker and Warzynski (AER, 2012), which developed a method (so-called DLW method) to estimate markups (market powers) using plant-level production data. Although DLW aimed to explore the relationship between markups and export behavior, its core value is the estimation method of firm-level markups. However, this paper finds that the DLW method still has some errors, one is the disadvantages of supply-side model, the other is that they used an identical equation to estimate markup.

Keywords: Market power; DLW method; Supply-side model; Parameters identification (search for similar items in EconPapers)
JEL-codes: F12 L12 L41 (search for similar items in EconPapers)
Date: 2016-10-12
New Economics Papers: this item is included in nep-ind
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