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