Business Cycles and the Relationship Between Concentration and Price-Cost Margins
Using a newly constructed panel data base, we examine changes in price-cost margins in 284 manufacturing industries between 1958 and 1981. A key finding is a dramatic narrowing of the spread between the margins of concentrated and unconcentrated industries over this period. We provide evidence that this narrowing is a result of the greater sensitivity of price-cost margins in more concentrated industries to demand fluctuations. This finding is robust to the inclusion of other industry variables and to measures of import competition. The results indicate that cross sectional estimates of the concentration-margins relationship are likely to be both biased and misleading.
Volume (Year): 17 (1986)
Issue (Month): 1 (Spring)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:17:y:1986:i:spring:p:1-17. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.