Department of Economics
Evanston, IL 60201
Institutional Affiliation: Northwestern University
Information about this author at RePEc
NBER Working Papers and Publications
|December 1986||Market Structure and Cyclical Fluctuations in U.S. Manufacturing|
with , : w2115
The relevance of imperfect competition for models of aggregate economic fluctuations has received increased attention from researchers in both macroeconomics and industrial organization. Measuring properly the size of industry markups of price over marginal cost is important both for assessing the role of market structure and for determining the extent to which excess capacity is a significant feature accompanying imperfect competition in American industry. Using a panel data set on four-digit Census manufacturing industries, this paper expands recent work by Robert Hall on the importance of market structure for understanding cyclical fluctuations. We outline a methodology for estimating industry markups of price over cost and the influence of market structure on cyclical movements in tota...
Published: Domowitz, Ian, R. Glenn Hubbard and Bruce C. Petersen. "Market Structures and Cyclical Fluctuations in U.S. Manufacturing," Review of Economics and Statistics, Vol. LXX, No. 1, pp. 55-66 (February 1988). citation courtesy of
|October 1986||Business Cycles and Oligopoly Supergames: Some Empirical Evidence on Prices and Margins|
with , : w2057
There has been a significant interest on a theoretical level in the application of supergames to oligopoly behavior. Implications for pricing behavior in trigger-strategy models in response to aggregate demand are of particular importance for public policy considerations. We contrast the predictions for the movements of industry prices over the business cycle of two such models -- put forth by Edward Green and Robert Porter and by Julio Rotemberg and Garth Saloner -- and test the predictions using a panel data set of U.S. manufacturing industries. Our principal findings are four. First, the levels of price-cost margins of concentrated, homogeneous-goods industries, while higher than those of unconcentrated counterparts, appear to be closer to those predicted by a single-period Cournot-Nash...
Published: Domowitz, Ian, R. Glenn Hubbard and Bruce C. Petersen. "Oligopoly Supergames: Some Empirical Evidence on Prices and Margins," Journal of Industrial Economics, Vol. 35, No. 4, June 1987, pp. 379-398.