The Fall and Rise of Market Power in Europe
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In: Jahrbucher für Nationalokonomie und Statistik, Vol. 241, No. 5-6, 01.11.2021, p. 555-575.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - The Fall and Rise of Market Power in Europe
AU - Weche, John P.
AU - Wambach, Achim
N1 - Publisher Copyright: © 2021 Walter de Gruyter GmbH, Berlin/Boston.
PY - 2021/11/1
Y1 - 2021/11/1
N2 - This paper presents an analysis of the recent developments of average market power in Europe by using a broad firm-level database for EU member states. To indicate competitive pressure at the firm-level, markups are estimated following De Loecker, J. (2011). Recovering markups from production data. Int. J. Ind. Organ. 29: 350-355, and De Loecker, J. and Warzynski, F. (2012). Markups and firm-level export status. Am. Econ. Rev. 102: 2437-2471. The analysis reveals a sharp drop in markups during the crisis, followed by a post-crisis increase. The European average has not yet reached its pre-crisis level, which is in contrast to results for the US, where average markups have climbed to pre-crisis levels already in 2011. There is significant heterogeneity among European economies and the pre-crisis levels do have been exceeded in some countries.
AB - This paper presents an analysis of the recent developments of average market power in Europe by using a broad firm-level database for EU member states. To indicate competitive pressure at the firm-level, markups are estimated following De Loecker, J. (2011). Recovering markups from production data. Int. J. Ind. Organ. 29: 350-355, and De Loecker, J. and Warzynski, F. (2012). Markups and firm-level export status. Am. Econ. Rev. 102: 2437-2471. The analysis reveals a sharp drop in markups during the crisis, followed by a post-crisis increase. The European average has not yet reached its pre-crisis level, which is in contrast to results for the US, where average markups have climbed to pre-crisis levels already in 2011. There is significant heterogeneity among European economies and the pre-crisis levels do have been exceeded in some countries.
KW - crisis
KW - Europe
KW - market power
KW - markups
KW - Economics
UR - http://www.scopus.com/inward/record.url?scp=85104803732&partnerID=8YFLogxK
U2 - 10.1515/jbnst-2020-0047
DO - 10.1515/jbnst-2020-0047
M3 - Journal articles
AN - SCOPUS:85104803732
VL - 241
SP - 555
EP - 575
JO - Jahrbucher für Nationalokonomie und Statistik
JF - Jahrbucher für Nationalokonomie und Statistik
SN - 0021-4027
IS - 5-6
ER -