| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 965551 | Journal of Macroeconomics | 2012 | 18 Pages |
Abstract
⺠Aggregate price mark-up reflects degree of imperfect competition in product market. ⺠Estimated elasticity of substitution above 1 in Spain, below 1 in the US. ⺠Labor income share depends on elasticity of substitution and price markup. ⺠Price markup accounts for 63% of the labor income share variation in Spain and 57% in the US. ⺠The elasticity of substitution explains, respectively, 27% and 39% of its variation.
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Authors
Xavier Raurich, Hector Sala, Valeri Sorolla,