Scalable Demand and Markups

• 成果类型: Article; Early Access
• 署名作者: Atalay, Enghin; Frost, Erika; Sorensen, Alan; Sullivan, Christopher; Zhu, Wanjia
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Philadelphia; University of Wisconsin System; University of Wisconsin Madison; National Bureau of Economic Research; University of Calgary
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/741641
• 发表日期: 2026
• 关键词: discrete-choice models; market power; prices; PRODUCTS; logit; rise

摘要

We study changes in markups across 70 product markets from 2006 to 2018. A growing literature has documented rising markups using a production function approach. We instead estimate demand and invert firms' first-order pricing conditions to infer markups. To make the method scalable, we propose estimating nested logit demand models using household panel data to automate the assignment of products to nests. We find an overall upward trend in markups, with considerable heterogeneity across and within product markets. These increases are primarily driven by changes in firms' marginal costs and households' price sensitivity instead of changes in firm ownership.