Teodora Borota Milicevic
() and Mikael Carlsson
Teodora Borota Milicevic: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
Mikael Carlsson: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
Abstract: In this paper we propose a novel method for the price-cost markup estimation and study the relationship between export intensity and the markup. We impose much less restrictive identifying assumptions on technology and adjustment frictions compared to previous studies and use Swedish firm-level inventory data on finished goods of own production to measure the markup. Furthermore, as we are using data on a quarterly frequency, we are able to provide novel results on the dynamic adjustment of the markup related to changes in export intensity.
22 pages, August 17, 2016
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