How European Markets Became Free: A Study of Institutional Drift

Gutiérrez, Germán; Philippon, Thomas

doi:10.3386/w24700

Cited by 107 publications

(84 citation statements)

References 57 publications

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“…The primary contribution of this paper is bringing new evidence on concentration trends in Europe, where the literature is so far limited and inconclusive, and, in doing so, also offering a new perspective on trends documented in other parts of the world, using different measures of concentration and different data sources. The paper most closely related to our paper is Gutiérrez and Philippon (2018), who use Orbis data and find that concentration ratios have remained broadly stable in Europe, both when calculated within countries and when treating all of Europe as a single market. Using Euromonitor data for 2010-2015, Valletti et al (2017) find mixed concentration trends for European economies.…”

Section: Existing Evidence On Concentration and Competition Trendsmentioning

confidence: 78%

Industry Concentration in Europe and North America

Bajgar¹,

Berlingieri²,

Calligaris³

et al. 2019

OECD Productivity Working Papers

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This report presents new evidence on industry concentration trends in Europe and in North America. It uses two novel data sources: representative firm-level concentration measures from the OECD MultiProd project, and business-group-level concentration measures using matched Orbis-Worldscope-Zephyr data. Based on the MultiProd data, it finds that between 2001 and 2012 the average industry across 10 European economies saw a 2-3-percentage-point increase in the share of the 10% largest companies in industry sales. Using the Orbis-Worldscope-Zephyr data, it documents a clear increase in industry concentration in Europe as well as in North America between 2000 and 2014 of the order of 4-8 percentage points for the average industry. Over the period, about 3 out of 4 (2-digit) industries in each region saw their concentration increase. The increase is observed for both manufacturing and non-financial services and is not driven by digital-intensive sectors.

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Section: Existing Evidence On Concentration and Competition Trendsmentioning

confidence: 78%

Industry Concentration in Europe and North America

Bajgar¹,

Berlingieri²,

Calligaris³

et al. 2019

OECD Productivity Working Papers

View full text Add to dashboard Cite

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“…industries, as emphasized by Gutiérrez and Philippon (2018). Or perhaps the mechanisms emphasized so far had dierent outcomes across regions and industries.…”

Section: Discussionmentioning

confidence: 99%

“…This over-states the decline in the labor share, as discussed further below and emphasized in Cette et al (2019). industries. They either point towards US-specic explanations perhaps a decline in competition as emphasized by Gutiérrez and Philippon (2018) or at least an osetting mechanism keeping non-US and non-manufacturing labor shares at.…”

mentioning

confidence: 99%

Revisiting the Global Decline of the (Non-Housing) Labor Share

Gutiérrez

Piton

2019

SSRN Journal

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We show that cross-country comparisons of corporate labor shares are aected by dierences in the delineation of corporate sectors. While the US excludes all self-employed and most dwellings from the corporate sector, other countries include large amounts of both biasing labor shares downwards. We propose two methods to control for these dierences and obtain`harmonized' nonhousing labor share series. Contrary to common wisdom, the harmonized series remain stable across all major economies except the US, where the labor share still declines, primarily due to manufacturing. These new facts cast doubts on most technological explanations for the labor share decline. JEL: E22, E25, L85. seminar participants at PSE, the Bank of England, NYU, Brown and SED for useful comments and discussions. All remaining errors are ours. Figure 1, where we focus on the four major European economies and the US (see Figure 3 below for global and country-level series). 3 1 Pionnier and Guidetti (2015) emphasize the importance of self-employment for corporate prot shares since 1995 but do not study their implications for the long-run decline of the labor share. This is our main result, illustrated by the black line in2 We rely on multiple vintages of EU KLEMS to obtain as long a time-series as possible. These vintages have been criticized in the literature (e.g. Autor and Salomons, 2018). We discuss our approach and several validation analyses in the Data Appendix.3 In order to cover as large a sample as possible and avoid the diculties in measuring depreciation, we focus on

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“…A broad discussion has emerged on the observation of increased industry concentration, markups and market power (Autor, Dorn, Katz, Patterson and Van Reenen, forthcoming;Basu, 2019;De Loecker and Eeckhout, 2018;De Loecker, Eeckhout and Unger, forthcoming;Grullon, Larkin and Michaely, 2019;Syverson, 2019). One concern is that concentration and market power may have increased as a consequence of an insufficient deterrence of anti-competitive mergers, especially in the U.S. (Baker, 2019, p. 15;Gutiérrez and Philippon, 2018;Kwoka, 2015;Philippon, 2019;Shapiro, 2018;Wollmann, 2019). Despite the prominence of this concern, empirical evidence remains limited.…”

Section: Introductionmentioning

confidence: 99%

Event Studies in Merger Analysis: Review and an Application Using U.S. TNIC Data

Klein

2020

SSRN Journal

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There is a growing concern that U.S. merger control may have been too lenient, but empirical evidence remains limited. After reviewing event studies as a method to acquire empirical insights into the competitive effects of mergers, I propose a novel application using Hoberg-Phillips TNIC data. This application allows for the ready approximation of abnormal stock market returns of likely competitors to 1,751 of the largest U.S. mergers since 1997. I document that likely competitors experience on average an abnormal return of close to one percent around a merger announcement. Abnormal returns are also strongly associated with concerns of market power, which suggests that competitors benefit at least in part because of an anticipation of anti-competitive effectsand hence insufficient merger control.

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How European Markets Became Free: A Study of Institutional Drift

Cited by 107 publications

References 57 publications

Industry Concentration in Europe and North America

Industry Concentration in Europe and North America

Revisiting the Global Decline of the (Non-Housing) Labor Share

Event Studies in Merger Analysis: Review and an Application Using U.S. TNIC Data

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