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Capital quasi-fixity and the estimation of markups

Author

Listed:
  • Hervé Boulhol

    (IXIS-CIB - Corporate Investment Bank, TEAM - Théories et Applications en Microéconomie et Macroéconomie - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

The treatment of capital costs, as either fixed or variable, is key for estimating markups. Data leans clearly towards fixity, which explains the high markups emphasized in previous studies based on Roeger's methodology. Direct estimation from the ratio of output over variable costs is preferable.

Suggested Citation

  • Hervé Boulhol, 2004. "Capital quasi-fixity and the estimation of markups," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00193298, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00193298
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00193298
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