Domestic and foreign price-marginal cost margins: an application to Spanish manufacturing firms
AbstractThe objective of this paper is to analyse the differences in price-marginal cost margins of the export and domestic markets by the estimation of a multiproduct cost function. We apply this method to a panel of Spanish export manufacturing firms from the period 1990-1997. Some results emerge from the estimations. First, price-marginal cost margins in domestic markets are larger than foreign margins throughout the period. Second, price-marginal cost margins are procyclical in the domestic market but there is no evidence of this behaviour in the foreign markets. Third, there is no evidence that export firms used the devaluation of the currency to increase their margins. Finally, price-cost margins reveal some degree of heterogeneity across industries in both markets.
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Bibliographic InfoPaper provided by Asociación Española de Economía y Finanzas Internacionales in its series Working Papers with number 00-03.
Length: 36 pages
Date of creation: Sep 2000
Date of revision:
Marginal cost; price-cost margins; translog cost function; export firm;
Other versions of this item:
- Lourdes Moreno & Diego Rodríguez, 2004. "Domestic and Foreign Price/Marginal-cost Margins: an Application to Spanish Manufacturing Firms," Review of International Economics, Wiley Blackwell, vol. 12(1), pages 60-80, 02.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
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- 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.
- Lourdes Moreno & Diego Rodríguez, 2010. "Markups, bargaining power and offshoring: An empirical assessment," Working Papers 10-05, Asociación Española de Economía y Finanzas Internacionales.
- Moreno, L & Rodríguez, D, 2010. "Markups, bargaining power and offshoring: an empirical assessment," MPRA Paper 23587, University Library of Munich, Germany.
- Sarah Guillou & Stefano Schiavo, 2007.
"Export prices and increasing world competition: evidence from French, German, and Italian pricing behavior,"
Documents de Travail de l'OFCE
2007-25, Observatoire Francais des Conjonctures Economiques (OFCE).
- Sarah Guillou & Stefano Schiavo, 2007. "Export prices and increasing world competition : evidence from French, German and Italian pricing behavior," Sciences Po publications 2007-25, Sciences Po.
- repec:spo:wpecon:info:hdl:2441/6123 is not listed on IDEAS
- Diego Rodriguez & Lourdes Moreno, 2013.
"The effect of international trade on markups distribution,"
Economics and Business Letters,
Oviedo University Press, vol. 2(1).
- Moreno, L & Rodríguez, D, 2009. "The effect of international trade on mark-ups distribution," MPRA Paper 22652, University Library of Munich, Germany.
- Moreno, Rosina & Lopez-Bazo, Enrique & Artis, Manuel, 2002. "Evaluating the optimality of Spanish industry (1980-1993)," ERSA conference papers ersa02p353, European Regional Science Association.
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