Markup and Cost Dispersion across Firms: Direct Evidence from Producer Surveys in Pakistan†.

Autor: Atkin, David, Chaudhry, Azam, Chaudry, Shamyla, Khandelwal, Amit K., Verhoogen, Eric
Předmět:
Zdroj: American Economic Review; May2015, Vol. 105 Issue 5, p537-544, 8p, 3 Charts, 1 Graph
Abstrakt: Researchers typically invoke theoretical assumptions to estimate mark-ups. Instead, we directly obtain mark-ups by surveying Pakistani soccer-ball producers. We document six facts: (i) Mark-ups are more dispersed than costs; (ii) Mark-ups and costs increase with firm size; (iii) The mark-up elasticity with respect to size exceeds the cost elasticity; (iv) Costs increase with size because larger firms use higher-quality inputs; (v) Larger firms charge higher mark-ups because they have higher production shares of high-quality balls that carry higher mark-ups, and because they charge higher mark-ups conditional on ball type; (vi) Correlations suggest marketing efforts are important for generating higher mark-ups. [ABSTRACT FROM AUTHOR]
Databáze: Complementary Index