Logo
Munich Personal RePEc Archive

Interpreting markups in Spanish manufacturing: The exponential model

Corchón, Luis C. and Moreno, L. (2010): Interpreting markups in Spanish manufacturing: The exponential model.

[thumbnail of MPRA_paper_26609.pdf]
Preview
PDF
MPRA_paper_26609.pdf

Download (225kB) | Preview

Abstract

In this paper we attempt to rationalize markups in a sample of Spanish manufacturing by assuming a representative consumer, profit-maximizing firms and constant returns to scale. We find that the standard forms of demand (CES and linear) do not provide a good explanation of markups. In contrast, a model where the representative consumer has an exponential utilty function yields results that match data more closely.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.