The empirical specification of price-cost margins

Dickson, Vaughan

doi:10.1016/0165-1765(93)00352-o

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Cited by 5 publications

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“…See discussions on the correct empirical specification of price-cost margins from e.g.Conyon and Machin (1991a,b) andDickson (1994).14 This presentation followsSchmalensee (1989, 960-61).15 SeeTybout (2001) and references therein for more details.…”

mentioning

confidence: 95%

Imports and Profitability in the Euro Area Manufacturing Sector: The Role of Emerging Market Economies

et al. 2008

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mentioning

confidence: 95%

Imports and Profitability in the Euro Area Manufacturing Sector: The Role of Emerging Market Economies

et al. 2008

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Input contracts, market structure and the empirical specification of price cost margins

Lukacs

1997

Economics Letters

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Vertical integration, input contracts and the margins - concentration relationship

Lukacs¹

1999

Applied Economics

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In recent years it has become common when specifying empirical price cost margins to use net output as opposed to the more usual gross output in the denominator. It has been noted that with gross output as the denominator the point estimate on concentration from a regression of margins on concentration is lower than with net output as the denominator and the estimate is frequently insignificant. The possible explanations that have been put forward to explain this empirical phenomenon are discussed and evidence is presented using data from the UK Census of Production and the UK Input Output tables. Neither theoretical nor empirical justification is found for the use of the adjusted margin but instead, it is suggested that the empirical phenomenon is caused by the omission of appropriate variables to control for contracting relations in purchasing intermediate inputs.

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The empirical specification of price-cost margins

Cited by 5 publications

References 6 publications

Imports and Profitability in the Euro Area Manufacturing Sector: The Role of Emerging Market Economies

Imports and Profitability in the Euro Area Manufacturing Sector: The Role of Emerging Market Economies

Input contracts, market structure and the empirical specification of price cost margins

Vertical integration, input contracts and the margins - concentration relationship

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