Modeling markups and its determinants: The case of Norwegian industries and regions

In this paper we use an innovative and nonstandard approach to model estimate markups market power. The uses a regression framework with determinants as well random component. We tool investigate the level of power in Norwegian industries regions. Norway is interesting case study because prices on most consumer goods services are higher than similar countries. Given that many studies show substantial increasing trend markup, it naturally different regions Norway. unbalanced panel collected by Tax Administration for period 2000–2018 address issue. find low non-increasing Norway, which from other Further, powers decrease firm-size, increase geographical industrial concentration rural location. • markups. account heterogeneity markup estimates. To get better understanding, include