Rising Markups and Profitability
Using data from the financial statements of all publicly traded firms covering all sectors of the U.S. economy over the period 1955-2016, a paper by Jan De Loecker, Jan Eeckhout and Gabriel Unger finds that aggregate markups (the cost-weighted average of firm-level markups) were generally stable between 1955 and 1980 but then rose steadily from 21 percent above cost in 1980 to 61 percent above cost in 2016.
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Last Updated on May 2, 2020 by Ramin Seddiq