Rising Markups and Declining Business Dynamism: Evidence From the Industry Cross Section

Brian C. Albrecht and Ryan A. Decker

FEDS Notes 2024

Published Version

Abstract

This FEDS Note presents industry-level evidence on the relationship between markup changes and business dynamism changes. Contrary to the narrative that rising markups caused declining dynamism, we find zero or positive correlation between these measures across industries.

Keywords

  • markups
  • business dynamism
  • Federal Reserve
  • market power
  • industrial organization

Citation

Brian C. Albrecht and Ryan A. Decker (2024). "Rising Markups and Declining Business Dynamism: Evidence From the Industry Cross Section." FEDS Notes.

BibTeX

@article{markups_dynamism_feds,
  title = {Rising Markups and Declining Business Dynamism: Evidence From the Industry Cross Section},
  author = {Brian C. Albrecht and Ryan A. Decker},
  year = {2024},
  journal = {FEDS Notes},
  url = {https://www.federalreserve.gov/econres/notes/feds-notes/rising-markups-and-declining-business-dynamism-evidence-from-the-industry-cross-section-20240308.html}
}