The Fall and Rise of Market Power in Europe

Bibliographic Data

ID22123014
AuthorsJohn P Weche (0000-0003-3801-1699, Leuphana University of Lüneburg, corresponding author), Achim Wambach (0000-0001-8636-9228, Centre for European Economic Research)
Year2021
Volume241
Issue5-6
Pages555-575
Publication date2021-11-25
Open AccessNo
TypeARTICLE
VenueJahrbucher fur Nationalokonomie und Statistik (JOURNAL)
Journal identifiersISSN: 2366-049X • E-ISSN: 0021-4027
PublisherWalter de Gruyter GmbH (PUBLISHER • DE)
DOI10.1515/jbnst-2020-0047
OpenAlexW3153252190
LanguageEN
Citations received4
References cited25

This paper presents an analysis of the recent developments of average market power in Europe by using a broad firm-level database for EU member states. To indicate competitive pressure at the firm-level, markups are estimated following De Loecker, J. (2011). Recovering markups from production data. Int. J. Ind. Organ. 29: 350–355, and De Loecker, J. and Warzynski, F. (2012). Markups and firm-level export status. Am. Econ. Rev. 102: 2437–2471. The analysis reveals a sharp drop in markups during the crisis, followed by a post-crisis increase. The European average has not yet reached its pre-crisis level, which is in contrast to results for the US, where average markups have climbed to pre-crisis levels already in 2011. There is significant heterogeneity among European economies and the pre-crisis levels do have been exceeded in some countries

Economics · Economy · European union · International economics · Macroeconomics · Market economy · Market power · Member states · Global Financial Crisis and Policies · Global trade and economics

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