Markups and Inequality
Corina Boar and
Virgiliu Midrigan ()
Additional contact information
Corina Boar: New York University
No 1184, 2019 Meeting Papers from Society for Economic Dynamics
We study the relationship between markups, firm concentration and inequality using a model of entrepreneurial dynamics in an environment with incomplete markets and borrowing constraints. A key ingredient of the model is that markups are endogenous so that the markup a producer charges depends on the amount of competition it faces. We ask two questions. First, what fraction of the rise in income and wealth inequality is due to changes in the U.S. tax code and decline in anti-trust enforcement that led to a rise in the level and dispersion of markups? Second, what are the consequences of policies aimed at curtailing the market power of firms and reducing the level of markups? We answer these questions by studying micro-level data on income and wealth, entrepreneurial activity and product market concentration through the lens of our model.
New Economics Papers: this item is included in nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Markups and Inequality (2019)
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:red:sed019:1184
Access Statistics for this paper
More papers in 2019 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().