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Original Articles

The business cycle, market structure and mark-ups: an Indian case study

Pages 251-254 | Published online: 07 Oct 2010
 

Abstract

The new industrial organization theories as applied to macroeconomics predict that the relationship between the business cycle and profit mark-up is mediated by market structure. This prediction is tested using panel data on Indian manufacturing and evidence is found to support the above proposition. In particular, it is found that mark-ups are more counter-cyclical in concentrated industries.

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