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I develop a general framework for markup and markdown estimation that allows for profit sharing along value chains without making assumptions on conduct between vertically related firms. I derive the conditions under which the markup and markdown estimates relate to the firms' equilibrium...
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We adapt a theoretical model from the goods trade literature to test whether banks with a comparative cost advantage are more likely to enter foreign markets by means of foreign direct investment. We combine detailed proprietary bank-level data on the international activities of all German banks...
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to raise firm-level markups. …
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contributions in the literature, we obtain exogenous credit supply shifters and markups that are both firm specific and time varying …. We uncover new findings at this level. In particular, firms more exposed to liquidity risks tend to raise markups in … firms have an incentive to raise markups in order to sustain liquidity. Our results have important economic implications …
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