The intertemporal stability of the concentration-margins relationship in Dutch and U.S. manufacturing

Factors influencing price-cost margins are investigated using a rich panel data base of the Dutch manufacturing sector. Attention is devoted to the intertemporal stability of the relationship explaining price-cost margins and to a comparison with U.S. results. Our results indicate that isolated cross-section analyses can be misleading. Evidence is provided for similarities and dissimilarities between the U.S. and the Netherlands when explaining price-cost margins. Dutch margins are influenced by industry-specific factors such as sales changes, import competition, capital intensity and operatin... Mehr ...