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Markups and Firm-Level Export Status: Comment

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  • Deng, Zhongqi
  • Chen, Yongjun

Abstract

This paper reviews a recent paper by De Loecker and Warzynski (AER, 2012), which developed a method (so-called DLW method) to estimate markups (market powers) using plant-level production data. Although DLW aimed to explore the relationship between markups and export behavior, its core value is the estimation method of firm-level markups. However, this paper finds that the DLW method still has some errors, one is the disadvantages of supply-side model, the other is that they used an identical equation to estimate markup.

Suggested Citation

  • Deng, Zhongqi & Chen, Yongjun, 2016. "Markups and Firm-Level Export Status: Comment," MPRA Paper 74494, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:74494
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Market power; DLW method; Supply-side model; Parameters identification;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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