A Note on the Estimation of Markup Pricing in Manufacturing

University of Aarhus Economics WP No. 1998-6

Posted: 1 Apr 1998

See all articles by Svend Hylleberg

Svend Hylleberg

Aarhus University - Department of Economics

Rikke Willemoes Jørgensen

Aarhus University - The Danish Institute for Studies in Research and Research Policy

Date Written: 1998

Abstract

Earlier results on estimating markup ratios as indicators of the competitive pressure are discussed and it is shown that the estimation method suggested by Roeger (1995) suffers from similar problems as an earlier method suggested by Hall (1988). It is also shown that the estimating equations applied are prone to autocorrelation and heteroskedasticity and that a proper treatment of these problems implies estimates of the markup ratios or more precisely the relation between the markup and the scale factor, which are smaller than those reported in the literature.

JEL Classification: C20, D49

Suggested Citation

Hylleberg, Svend and Jørgensen, Rikke Willemoes, A Note on the Estimation of Markup Pricing in Manufacturing (1998). University of Aarhus Economics WP No. 1998-6. Available at SSRN: https://ssrn.com/abstract=72828

Svend Hylleberg (Contact Author)

Aarhus University - Department of Economics ( email )

University Park
DK-8000 Aarhus C
Denmark
+45 8942 1133 (Phone)
+45 8613 6334 (Fax)

Rikke Willemoes Jørgensen

Aarhus University - The Danish Institute for Studies in Research and Research Policy

Denmark

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