Are Markups Increasing?

Given the recent discussion about trends in corporate profits and market power [see a great FT article by Robin Harding, this op-ed from Paul Krugman, this post from Tyler Cowen, and these two posts of mine], I thought I’d share this figure from a recent paper by Valerie Ramey and Christopher Nekarda, which shows a clear increase in markups.

markups

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About ozidar

I'm an Assistant Professor of Economics at the University of Chicago Booth School of Business and a Faculty Research Fellow at National Bureau of Economic Research. You can follow me on twitter @omzidar. http://faculty.chicagobooth.edu/owen.zidar/index.html
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