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THE MEASUREMENT OF PRODUCTIVITY AND MARKET STRUCTURE IN THE UK
Author(s) -
Caporale Guglielmo Maria
Publication year - 1994
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.1994.tb00578.x
Subject(s) - economics , productivity , solow residual , competition (biology) , imperfect competition , econometrics , perfect competition , measure (data warehouse) , markup language , null hypothesis , market power , microeconomics , total factor productivity , growth accounting , macroeconomics , computer science , ecology , monopoly , database , biology , xml , operating system
This paper explains how the Solow residual should be adjusted to provide a correct measure of productivity when markets are not perfectly competitive. Although the null hypothesis of a unity markup coefficient can not be rejected, values greater than one also lie within the confidence interval. Hence the adjustment for imperfect competition should be carried out. The finding that the average mark‐up coefficient in the UK is lower than in the US might reflect the higher degree of intra‐EC import competition.