In this paper I use the production function approach popularized by De Loecker et al. (2020) to analyze the evolution of market power in Slovakia and some of its micro and macro implications. In contrast to other studies, I calculate markups from both value added and sales and empirically test...

This paper examines the impact of trade liberalization on firms' product and labor market power. We estimate the prevalence and intensity of firm-level price-cost markups and either wage markups or wage markdowns. We take the dependence between these model-consistent measures of product and...

We show standard methods to estimate production functions do not identify markups.This nonidentification creates spurious skewness in estimated markup distributions.We also show that ex-ante structure on the returns to scale solves the identificationproblem. In US public firm data and in a Monte...

This paper studies how expected returns interact with product market competition. We present a model in which product market competition is jointly captured by the industry concentration and the average markup. We then provide empirical evidence consistent with three channels that explain the...

What are the pro-competitive consequences of trade in frictional labor markets? This paper develops and estimates a dynamic general equilibrium trade model to show that the interplay between endogenously variable markups in product markets and frictions in labor markets has important...

We analyze the aggregate markup of a small-open economy, Belgium, using a firm-level dataset that includes all non-financial, private firms. The dataset covers the period 1980-2016 and merges the annual firm accounts over three periods when firms faced different reporting thresholds for the key...