IDEAS home Printed from https://ideas.repec.org/p/mac/wpaper/0202.html
   My bibliography  Save this paper

Markup, Returns to Scale, the Business Cycle and Openness: Evidence from Australian Manufacturing

Author

Listed:
  • Michael Olive

    () (Department of Economics, Macquarie University)

Abstract

A Hall type model that includes intermediate materials in the production function and allows for non-stochastic time variation in the contribution of technical change to output growth is used to estimate markup and returns to scale for eight Australian manufacturing industries at approximately the two-digit level, during the period 1971-72 to 1984-85. Six of the eight manufacturing industries indicate markups that are greater than one, implying the widespread existence of market power in Australian manufacturing. Constant returns to scale are not rejected for any individual industry or jointly. Markups are generally found to be pro-cyclical, although there is some evidence to suggest that this relationship is not as strong in industries that are open to the international economy.

Suggested Citation

  • Michael Olive, 2002. "Markup, Returns to Scale, the Business Cycle and Openness: Evidence from Australian Manufacturing," Research Papers 0202, Macquarie University, Department of Economics.
  • Handle: RePEc:mac:wpaper:0202
    as

    Download full text from publisher

    File URL: http://www.econ.mq.edu.au/research/2002/2-2002Olive.PDF
    File Function: First Version, 2002
    Download Restriction: no

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Salman Ahmad & Attiya Yasmin Javid, 2015. "Analysing the Price Cost Markup and Its Behaviour over the Business Cycles in Case of Manufacturing Industries of Pakistan," PIDE-Working Papers 2015:117, Pakistan Institute of Development Economics.
    2. Sasan Bakhtiari, 2011. "Size Evolution and Outsourcing: Theory and Evidence from Australian Manufacturing," Discussion Papers 2012-08, School of Economics, The University of New South Wales.
    3. Nikola Bokan & Lovorka Grgurić & Ivo Krznar & Maroje Lang, 2009. "The Impact of the Financial Crisis and Policy Responses in Croatia," Working Papers 22, The Croatian National Bank, Croatia.

    More about this item

    Keywords

    Markup; Business Cycles; Openness;

    JEL classification:

    • F1 - International Economics - - Trade
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mac:wpaper:0202. 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: (Helen Boneham). General contact details of provider: http://edirc.repec.org/data/edmqqau.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.