Volume 7, Issue 25 (12-2016)                   jemr 2016, 7(25): 183-215 | Back to browse issues page


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Azami S, Jalilian S, Ahmadi M. Simultaneous Estimation of Markup and Return to Scale in Manufacturing Industries of Iran. jemr. 2016; 7 (25) :183-215
URL: http://jemr.khu.ac.ir/article-1-1290-en.html
Abstract:   (1719 Views)

The current study is an attempt to estimate markup and return to scale of 19 two-digit ISIC manufacturing industries of Iran, simultaneously, in accordance to Solow Residual and Structural approach, during the period 1995-2007. Based on Solow Residual approach, the neoclassical assumption of constant return to scale is approved within 95% of manufacturing industries; however in 84% of industries the price was higher than marginal cost significantly. Based on structural approach, 53% of manufacturing industries of Iran are experiencing increasing return to scale significantly; however, in 79% of industries, the price is higher than marginal cost. According to the criteria share of the cost of inputs in income as a theoretic criteria for return to scale-markup ratio, in 53% of cases, structural approach estimates this ratio closer to the reality.

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Type of Study: Applicable | Subject: سایر
Received: 2015/08/29 | Accepted: 2016/11/16 | Published: 2016/12/19

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