Competition in the Portuguese economy: Estimated price-cost margins under imperfect labour markets
AbstractThis article estimates price-cost margins for the Portuguese markets in a context of imperfect competition in the labour market. The database used includes virtually the universe of Portuguese firms for the period 2005-2009. The results strongly reject the hypothesis of perfect competition in both labour and product markets. Estimated price-cost margins are very heterogeneous across markets and the average for the overall economy ranges between 25 and 28 per cent, depending on the variables used to weight each market. In addition, the tradable sector presents a lower price-cost margin than the non-tradable sector. According to the methodology used, workersâ bargaining power in the Portuguese economy is approximately 13 per cent, without a clear distinction between tradable and non-tradable sectors. Finally, workersâ bargaining power is highly and positively correlated with price-cost margins across markets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Banco de Portugal, Economics and Research Department in its journal Economic Bulletin.
Volume (Year): (2013)
Issue (Month): ()
Other versions of this item:
- João Amador & Ana Cristina Soares, 2013. "Competition in the portuguese economy: Estimated price-cost margins under imperfect labour markets," Working Papers w201308, Banco de Portugal, Economics and Research Department.
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Filip Abraham & Jozef Konings & Stijn Vanormelingen, 2007.
"The Effect of Globalization on Union Bargaining and Price-Cost Margins of Firms,"
LICOS Discussion Papers
18107, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Filip Abraham & Jozef Konings & Stijn Vanormelingen, 2009. "The effect of globalization on union bargaining and price-cost margins of firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(1), pages 13-36, April.
- Antonio Bassanetti & Roberto Torrini & Francesco Zollino, 2010.
"Changing institutions in the European market: the impact on mark-ups and rents allocation,"
Temi di discussione (Economic working papers)
781, Bank of Italy, Economic Research and International Relations Area.
- Antonio Bassanetti & Roberto Torrini & Francesco Zollino, . "Changing Institutions in the European Market: the Impact on Mark-ups and Rents Allocation," Working Papers 11, Department of the Treasury, Ministry of the Economy and of Finance.
- Rebekka Christopoulou & Philip Vermeulen, 2012.
"Markups in the Euro area and the US over the period 1981–2004: a comparison of 50 sectors,"
Springer, vol. 42(1), pages 53-77, February.
- Christopoulou, Rebekka & Vermeulen, Philip, 2008. "Markups in the euro area and the US over the period 1981-2004: a comparison of 50 sectors," Working Paper Series 0856, European Central Bank.
- Olley, G Steven & Pakes, Ariel, 1996.
"The Dynamics of Productivity in the Telecommunications Equipment Industry,"
Econometric Society, vol. 64(6), pages 1263-97, November.
- G. Steven Olley & Ariel Pakes, 1992. "The Dynamics of Productivity in the Telecommunications Equipment Industry," NBER Working Papers 3977, National Bureau of Economic Research, Inc.
- George S Olley & Ariel Pakes, 1992. "The Dynamics Of Productivity In The Telecommunications Equipment Industry," Working Papers 92-2, Center for Economic Studies, U.S. Census Bureau.
- Bruno CRÉPON & Rozen DESPLATZ & Jacques MAIRESSE, 2005.
"Price-Cost Margins and Rent Sharing: Evidence from a Panel of French Manufacturing Firms,"
Annales d'Economie et de Statistique,
ENSAE, issue 79-80, pages 583-610.
- Bruno Crépon & Rozen Desplatz & Jacques Mairesse, 2010. "Price-Cost Margins and Rent Sharing: Evidence from a Panel of French Manufacturing Firms," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 583-610 National Bureau of Economic Research, Inc.
- Hervé Boulhol & Sabien Dobbelaere & Sara Maioli, 2011.
"Imports as Product and Labour Market Discipline,"
British Journal of Industrial Relations,
London School of Economics, vol. 49(2), pages 331-361, 06.
- Herv� Boulhol & Sabien Dobbelaere & Sara Maioli, 2009. "Imports as Product and Labour Market Discipline," Tinbergen Institute Discussion Papers 09-002/3, Tinbergen Institute.
- Boulhol, Hervé & Dobbelaere, Sabien & Maioli, Sara, 2006. "Imports as Product and Labor Market Discipline," IZA Discussion Papers 2178, Institute for the Study of Labor (IZA).
- H. Boulhol & S. Dobbelaere & S. Maioli, 2007. "Imports as product and labour market discipline," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/479, Ghent University, Faculty of Economics and Business Administration.
- Olivier Blanchard & Francesco Giavazzi, 2001.
"Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets,"
NBER Working Papers
8120, National Bureau of Economic Research, Inc.
- Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects Of Regulation And Deregulation In Goods And Labor Markets," The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 879-907, August.
- Blanchard, Olivier J & Giavazzi, Francesco, 2001. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labour Markets," CEPR Discussion Papers 2713, C.E.P.R. Discussion Papers.
- Olivier Blanchard & Francesco Giavazzi, . "Macroeconomic effects of regulation and deregulation in goods and labor markets," Working Papers 187, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Hall, Robert E, 1988.
"The Relation between Price and Marginal Cost in U.S. Industry,"
Journal of Political Economy,
University of Chicago Press, vol. 96(5), pages 921-47, October.
- Robert E. Hall, 1986. "The Relation Between Price and Marginal Cost in U.S. Industry," NBER Working Papers 1785, National Bureau of Economic Research, Inc.
- Lourdes Moreno & Diego Rodríguez, 2010.
"Markups, bargaining power and offshoring: An empirical assessment,"
10-05, Asociación Española de Economía y Finanzas Internacionales.
- Lourdes Moreno & Diego Rodríguez, 2011. "Markups, Bargaining Power and Offshoring: An Empirical Assessment-super-1," The World Economy, Wiley Blackwell, vol. 34(9), pages 1593-1627, 09.
- Moreno, L & Rodríguez, D, 2010. "Markups, bargaining power and offshoring: an empirical assessment," MPRA Paper 23587, University Library of Munich, Germany.
- João Amador & Ana Cristina Soares, 2012.
"Competition in the Portuguese Economy: Insights from a profit elasticity approach,"
w201217, Banco de Portugal, Economics and Research Department.
- Amador, João & Soares, Ana Cristina, 2013. "Competition in the Portuguese economy: insights from a profit elasticity approach," Working Paper Series 1603, European Central Bank.
- Roeger, Werner, 1995. "Can Imperfect Competition Explain the Difference between Primal and Dual Productivity Measures? Estimates for U.S. Manufacturing," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 316-30, April.
- Levinsohn, James, 1993.
"Testing the imports-as-market-discipline hypothesis,"
Journal of International Economics,
Elsevier, vol. 35(1-2), pages 1-22, August.
- James Levinsohn, 1991. "Testing the Imports-as-Market-Discipline Hypothesis," NBER Working Papers 3657, National Bureau of Economic Research, Inc.
- Levinsohn, J., 1991. "Testing the Imports-As-Market-Discipline Hypothesis," Working Papers 272, Research Seminar in International Economics, University of Michigan.
- Ana Cristina Soares & João Amador, 2012. "Competition in the Portuguese Economy:An overview of classical indicators," Working Papers w201208, Banco de Portugal, Economics and Research Department.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (DEE-NTDD).
If references are entirely missing, you can add them using this form.