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Econometrica· 2016Q1

Prices, Markups, and Trade Reform

Jan De Loecker, Pinelopi Goldberg, Amit Khandelwal, Nina Pavcnik

Short summary

Trade liberalization in India led to a 10-17% increase in firm-level markups, suggesting firms used reform to raise prices rather than pass on cost savings.

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Field: General Economics, Econometrics and Finance

General Economics, Econometrics and FinanceEconomics, Econometrics and Finance