Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/192937
Authors: 
Dögüs, Ilhan
Year of Publication: 
2019
Series/Report no.: 
ZÖSS Discussion Paper No. 72
Abstract: 
The relationship between consumption inequality (between two groups) and market concentration has hitherto been absent from the literature. This paper argues that consumption dispersion between white-collar and blue-collar workers has caused increased market concentration in the USA in a direct and long-term structural manner. Using data from the Consumption Expenditure Survey (CES) and the St. Louis Fed's FRED datasets, the argument is empirically analyzed based on yearly data for the period 1984-2011 in the USA. The results confirm the existence of a long-term relationship of causality. Applying a vector auto regressive (VAR) model to the data, we find that the variance in market concentration markup due to consumption dispersion starts to rise after the fourth period and reaches 41% in the tenth period.
Subjects: 
consumption
market concentration
white-collar workers
JEL: 
J31
J51
J82
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.