Markups vary widely across industries and countries, their heterogeneity has increased overtime and asymmetric exposure … of markups affects resource misallocation and welfare in a general equilibrium framework encompassing a large class of … markups, may reduce welfare. Our approach is novel both in its generality and in the emphasis on the second moment of the …

Markups vary widely across industries and countries, their heterogeneity has increased overtime and asymmetric exposure … of markups a¤ects resource misallocation and welfare in a general equilibrium framework encompassing a large class of … markups, may reduce welfare. Our approach is novel both in its generality and in the emphasis on the second moment of the …

prices, productivity levels and markups as functions of openness to trade at a sectoral level. The theory lends itself … evidence that trade openness exerts a competitive effect, with prices and markups falling and productivity rising. Consistent …

markups. Using disaggregated data for EU manufacturing over the period 1988-2000 we find increased openness exerts a negative … and significant impact on sectoral prices. Increased openness lowers prices by both reducing markups and raising … productivity. In response to an increase in openness, markups show a steep short run decline, which partly reverses later, while …

prices, productivity levels and markups as functions of openness to trade at a sectoral level. The theory lends itself … evidence that trade openness exerts a competitive effect, with prices and markups falling and productivity rising. Consistent …