Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202406 
Year of Publication: 
2014
Series/Report no.: 
EAG Discussion Paper No. EAG 14-1
Publisher: 
U.S. Department of Justice, Antitrust Division, Economic Analysis Group (EAG), Washington, DC
Abstract: 
We show that, in general, consistent estimates of cost pass-through are not obtained from reduced-form regressions of price on cost. We derive a formal approximation for the bias that arises even under standard orthogonality conditions. We provide guidance on the conditions under which bias may frustrate inference.
Document Type: 
Working Paper

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