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The Distribution of Monopolistic Markups in the Polish Economy

National Bank of Poland Working Paper No. 121

38 Pages Posted: 18 Jul 2012 Last revised: 8 Jul 2016

Jan Hagemejer

National Bank of Poland; University of Warsaw - Faculty of Economic Sciences

Piotr Popowski

National Bank of Poland

Date Written: July 2, 2012

Abstract

Estimates of monopolistic markups are relatively scarce in the literature mostly due to lack of appropriate data and methodological difficulties, while their behaviour has important implications for the conduct of monetary policy. We estimate the monopolistic markups in the Polish economy in the period of 1995-2009 using Polish firm level data. We show the association of the markup level with the sectoral characteristics, type of good produced and the form of ownership, as well as investigate the impact of both internationalization and competitive pressure on the level of markups. We show a somewhat puzzling and at the same time robust increase in markups after the EU accession of the Polish economy to the EU in 2004. Moreover, in line with previous findings, we show that price cost margins are countercyclical with respect to the macroeconomic cycle and procyclical at sectoral level.

Suggested Citation

Hagemejer, Jan and Popowski, Piotr, The Distribution of Monopolistic Markups in the Polish Economy (July 2, 2012). National Bank of Poland Working Paper No. 121. Available at SSRN: https://ssrn.com/abstract=2109410 or http://dx.doi.org/10.2139/ssrn.2109410

Jan Hagemejer (Contact Author)

National Bank of Poland ( email )

00-919 Warsaw
Poland

University of Warsaw - Faculty of Economic Sciences ( email )

Dluga Street 44/50
Warsaw, 00-241
Poland

Piotr Popowski

National Bank of Poland ( email )

00-919 Warsaw
Poland

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