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Domestic and Foreign Price-Marginal Cost Margins: An Application to Spanish Manufacturing Firms

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Moreno Martín, Lourdes and Rodríguez Rodríguez, Diego (2004) Domestic and Foreign Price-Marginal Cost Margins: An Application to Spanish Manufacturing Firms. Review of International Economics, 12 (1). pp. 60-80. ISSN Online ISSN: 1467-9396

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Official URL: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9396




Abstract

This paper investigates the differences in margins of export and domestic markets for Spanish manufacturing firms in the period 1990-1997. We estimate jointly a multiproduct cost function, a variable factor share equation and two price-marginal cost margin equations. The results obtained indicate that the marginal cost of production sold in export markets is slightly greater than in domestic markets. At the same time, the price-marginal cost margins in export markets are smaller than in domestic markets. We also find strong evidence that margins are procyclical in the domestic markets, but this evidence is less clear in the foreign markets.


Item Type:Article
Uncontrolled Keywords:Spanish Manufacturing Firms; Domestic and Foreign Markets.
Subjects:Social sciences > Economics > World economy
Social sciences > Economics > Industrial organization
JEL:F12, L13, L60
ID Code:43298
Deposited On:13 Jul 2017 12:39
Last Modified:13 Jul 2017 12:41

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