Research Details

Abstract

In this paper, we provide direct evidence on the behavior of retail-sector gross margins across space and time. We consider three levels of aggregation: the retail sector as a whole, ?rm-level data, and product-level data. We ?nd that: (1) gross margins are relatively stable over time and mildly procyclical; (2) there is large regional dispersion in gross margins; (3) there is a positive cross-sectional correlation between local income and local gross margins; and (4) di?erences in gross margins across regions are explained by di?erences in assortment, not by deviations from uniform pricing.

Type

Working Paper

Author(s)

Sergio Rebelo, Arlene Wong, Eric T. Anderson

Date Published

2023

Citations

Rebelo, Sergio, Arlene Wong, and Eric T. Anderson. 2023. Markups across Space and Time.