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DP11058 Unraveling Firms: Demand, Productivity and Markups Heterogeneity

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posted on 2023-06-09, 00:11 authored by Emanuele Forlani, Ralf Martin, Giordano Mion, Mirabelle Muuls
We develop a new econometric framework that simultaneously allows recovering heterogeneity in demand, TFP and markups across firms while leaving the correlation among the three unrestricted. We do this by systematically exploiting assumptions that are implicit in previous firm-level productivity estimation approaches. We use Belgian firms production data to quantify TFP, demand and mark-ups and show how they are correlated among them, across time and with measures obtained from other approaches. We also show to what extent our three dimensions of heterogeneity allow us to gain deeper and sharper insights on two key firm-level outcomes: export status and size.

History

Publication status

  • Published

Publisher

Centre for Economic Policy Research

Pages

56.0

Department affiliated with

  • Economics Publications

Institution

International Trade and Regional Economics

Full text available

  • No

Legacy Posted Date

2016-01-29

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