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Pasaje de costos a precios: evidencia microeconómica para comercios minoristas en Uruguay

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  • Pablo Blanchard

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

Abstract

In this paper, I estimate the pass-through rates of cost to prices in small and medium retail stores for rice, tomato pulp and flour in Uruguay using a structural model. A demand system for differentiated products is estimated using a logit model of random coefficients. I use the demand estimation jointly with pricing rules in order to recover marginal costs, profit margins and the pass-through rates. I found pass through rates ranging from 25% to 86% in median for the whole country under Nash-Bertrand price competition and ratios between 11% and 78% when collusion is assumed. I use information about prices and quantities sold to beneficiaries of a Uruguayan social program. The work presents two relevant limitations in terms of the information used: only the quantities acquired through the social program are available and there is no information available for the universe of the varieties of each product.

Suggested Citation

  • Pablo Blanchard, 2021. "Pasaje de costos a precios: evidencia microeconómica para comercios minoristas en Uruguay," Documentos de Trabajo (working papers) 21-27, Instituto de Economía - IECON.
    • Handle: RePEc:ulr:wpaper:dt-27-21
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    File URL: https://hdl.handle.net/20.500.12008/30938
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    Keywords

    D43; L11; L81;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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