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POID Research Seminar

Markups trends and trade

Agnes Norris Keiller (POID and CEP), Andreas Teichgraeber (LSE), joint work with Tim Obermeier and John Van Reenen


Tuesday 09 January 2024 11:00 - 12:00

This event is both online and in person

SAL 2.04, 2nd Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH

About this event

Markup estimation has gained attention in recent years following work by de Loecker et al documenting increases in markups across a range of countries and industries. Their findings contrast with a series of studies in the Industrial Organisation literature that use demand system estimation techniques and find that markups have fallen. Using a simple decomposition, we show these apparently contradictory findings can both be true because of trade: when output is traded, producer-side markups (such as those estimated by de Loecker et al) will diverge from consumer-side markups (estimated using demand system methods) if demand conditions are different in domestic and foreign markets. We illustrate the implications of this finding using data from the UK car market. While consumer-side markups have fallen since the early 2000s, producer side markups have increased considerably due to an increase in the markup earnt on car exports. We use supplementary data to support the link between increased markups and trade and present suggestive evidence that the increase in producer-side markups are primarily due to exports to China and the USA.


Participants are expected to adhere to the Events Code of Conduct.


This event will take place in SAL 2.04, 2nd Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.

The building is labelled SAL on the map. Enter the building via Lincoln's Inn Fields.

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