Estimation of service sector mark-ups determined by structural reform indicators

Abstract:
This paper analyses the impact of regulation on product sector mark-ups across the EU and confirms that less strict regulation tends to foster competition and reduce mark-up rates. The results also show that mark-ups in most EU countries and sectors have been declining over the last 15 years as a result of competition-friendly reforms. The paper also casts light on which areas of regulation are most important for mark-ups in individual sectors.

European Commission: DG Economic and Financial Affairs: European Economy: Economic Papers No. 547, April 2015: Estimation of service sector mark-ups determined by structural reform indicators http://ec.europa.eu/economy_finance/publications/economic_paper/2015/ecp547_en.htm

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