Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104812
Authors: 
Germeshausen, Robert
Panke, Timo
Wetzel, Heike
Year of Publication: 
2014
Series/Report no.: 
ZEW Discussion Papers 14-105
Abstract: 
This paper empirically analyzes the existence of market power in the global iron ore market during the period 1993-2012 using an innovative Stochastic Frontier Analysis approach introduced by Kumbhakar et al. (2012). In contrast to traditional econometric procedures, this approach allows for the estimation of firm- and time-specific Lerner indices and, therefore, the assessment of the influence of individual firm characteristics on the ability to generate markups. We find that markups on average amount to 20%. Moreover, location and experience are identified to be the most important determinants of the magnitude of firm-specific markups.
Subjects: 
Estimation of market power
Lerner indices
Stochastic Frontier Analysis
Non-renewable resources
JEL: 
D22
L11
L72
Document Type: 
Working Paper

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