Markups

Alvaro Garcia-Marin · Santiago Justel · Tim Schmidt-Eisenlohr

This paper provides a theory and evidence for why firms with higher markups extend more trade credit, focusing on a financing cost channel that is distinct from existing competition-based …

Morten O. Ravn · Stephanie Schmitt-Grohé · Martín Uribe

If households form habits over individual goods rather than over a consumption aggregate, the demand a firm faces depends on its own past sales, its pricing problem becomes dynamic, and mark-ups turn …

Maarten De Ridder · Basile Grassi · Giovanni Morzenti

Using matched data combining physical production records (EAP survey) and financial statements (FARE) for 147,403 firm-years across 18 two-digit manufacturing industries in France (2009–2019), the …

Samuel Dodini · Anna Stansbury · Alexander Willén

This paper studies who bears the cost when unions raise worker wages — consumers, shareholders, other workers, or nobody, if productivity offsets the cost — using a legislative change in Norway that …