Price-cost mark-ups in UK industry
2018-01-18T10:15:11Z (GMT) by
This paper tests for the presence of monopolistic price markups across UK industrial sectors by testing for a non-zero covariance between the Solow residual and various instruments. This follows the methodology of Hall (1988). We find evidence of significant markups in the Manufacturing and Services sectors which together account for more than 90% of total employment within the UK.