| Author (Person) | Canton, Erik, Thum-Thysen, Anna |
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| Author (Corporate) | European Commission: DG Economic and Financial Affairs |
| Publisher | Publications Office of the European Union |
| Series Title | European Economy: Discussion Papers |
| Series Details | Number 046 |
| Publication Date | 18/05/2017 |
| ISSN | 2443-8022 |
| Content Type | Research Paper |
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Summary: In this paper we estimate mark-ups and their association with product market regulations (PMR) in professional services sectors using the Orbis firm-level database for 13 EU member states. We will concentrate on engineering and accounting. Results indicate a significant effect of PMR on mark-ups, which confirms findings based on sectoral data (cf. Thum-Thysen and Canton, 2015) but a more granular analysis on the firm level gives additional insights. Compared to estimates of mark-ups based on sectoral data, the mark-up levels in the two analysed sectors using firm-level data are found to be higher. This may be due to a more granular sectoral definition, only covering regulated professions, where firms can gain market power and charge higher mark-ups. The new empirical findings could be useful for the analytical work on estimating the impact of structural reforms. |
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| Source Link |
Link to Main Source
https://ec.europa.eu/info/publications/economy-finance/estimating-mark-ups-and-effect-product-market-regulations-selected-professional-services-sectors_en
Alternative sources
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| Subject Categories | Internal Markets |
| Keywords | Product-market regulation [PMR] |
| Countries / Regions | Europe |
| International Organisations | European Union [EU] |
