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Interpreting Markups in Spanish Manufacturing: The Exponential Model

Corchón, Luis C. and Moreno Martín, Lourdes (2010) Interpreting Markups in Spanish Manufacturing: The Exponential Model. [ ] (Unpublished)

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Abstract

In this paper we attempt to rationalize markups in a sample of Spanish manufacturing by assuming a representative consumer, proft-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 utility function yields results that match data more closely.


Item Type:Working Paper or Technical Report
Uncontrolled Keywords:Spanish Manufacturing,
Subjects:Social sciences > Economics > Industrial organization
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ID Code:11517
References:

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Deposited On:22 Nov 2010 09:26
Last Modified:06 Feb 2014 09:05

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