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Seminarios académicos y conferencias

Virgiliu Midrigan, New York University

"Markups and Inequality"

Coautoreado con Corina Boar

28 Mayo 2021 - 14:00 hrs.

Vía Zoom

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Abstract: We study optimal product market interventions in an unequal economy in which firm ownership is concentrated and markups increase with firm market shares. We characterize optimal regulation in a static Mirrleesian setting in which we impose no constraints on the shape of interventions, and take into account their general equilibrium and distributional effects. We find that optimal regulation improves allocative efficiency, thereby increasing product market concentration. Though it leads to greater inequality, optimal regulation increases the equilibrium wage, benefiting most households. This result extends to a dynamic setting with capital and wealth accumulation.