We investigate the empirical usefulness of a new measure of the degree of competition in a market, proposed by Boone (2000). This measure is based on the reduction in profits that firms experience as a result of cost inefficiencies. We compare this with measures commonly used by policy makers...

Intro -- Contents -- I. INTRODUCTION -- II. MEASURING THE COST OF LIVING -- III. TRUE REAL EFFECTIVE EXCHANGE RATES -- IV. AN APPLICATION: THE IRISH ECONOMY'S EXPOSURE TO STERLING -- V. CONCLUSION -- Appendix -- References.

Winner's percentage, a common measure of electoral competition in winner-take-all elections, measures the shift in vote shares required to produce changes in election outcome. Thus, winner's percentage of the vote cast is a logical measure of winner-take-all competition. It treats equally shifts...