Planned growth as a determinant of the markup: the case of Slovenian manufacturing

<p><em>The paper follows the idea of heterodox economists that a cost-plus price is above all a reproductive price and growth price. The authors apply a firm-level model of markup determination which, in line with theory and empirical evidence, contains proposed firm-specific determinant...

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Main Authors: Maks Tajnikar, Nina Ponikvar
Format: Article
Language:English
Published: University of Ljubljana 2009-11-01
Series:Economic and Business Review
Online Access:http://www.ebrjournal.net/ojs/index.php/ebr/article/view/12
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author Maks Tajnikar
Nina Ponikvar
author_facet Maks Tajnikar
Nina Ponikvar
author_sort Maks Tajnikar
collection DOAJ
description <p><em>The paper follows the idea of heterodox economists that a cost-plus price is above all a reproductive price and growth price. The authors apply a firm-level model of markup determination which, in line with theory and empirical evidence, contains proposed firm-specific determinants of the markup, including the firm&rsquo;s planned growth. The positive firm-level relationship between growth and markup that is found in data for Slovenian manufacturing firms implies that retained profits gathered via the markup are an important source of growth financing and that the investment decisions of Slovenian manufacturing firms affect their pricing policy and decisions on the markup size as proposed by Post-Keynesian theory. The authors thus conclude that at least a partial trade-off between a firm&rsquo;s growth and competitive outcome exists in Slovenian manufacturing.</em></p>
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spelling doaj.art-3e5ce53fa7a549bbabb65774e0cf95e62022-12-21T19:23:35ZengUniversity of LjubljanaEconomic and Business Review1580-04662009-11-01112119135Planned growth as a determinant of the markup: the case of Slovenian manufacturingMaks TajnikarNina Ponikvar<p><em>The paper follows the idea of heterodox economists that a cost-plus price is above all a reproductive price and growth price. The authors apply a firm-level model of markup determination which, in line with theory and empirical evidence, contains proposed firm-specific determinants of the markup, including the firm&rsquo;s planned growth. The positive firm-level relationship between growth and markup that is found in data for Slovenian manufacturing firms implies that retained profits gathered via the markup are an important source of growth financing and that the investment decisions of Slovenian manufacturing firms affect their pricing policy and decisions on the markup size as proposed by Post-Keynesian theory. The authors thus conclude that at least a partial trade-off between a firm&rsquo;s growth and competitive outcome exists in Slovenian manufacturing.</em></p>http://www.ebrjournal.net/ojs/index.php/ebr/article/view/12
spellingShingle Maks Tajnikar
Nina Ponikvar
Planned growth as a determinant of the markup: the case of Slovenian manufacturing
Economic and Business Review
title Planned growth as a determinant of the markup: the case of Slovenian manufacturing
title_full Planned growth as a determinant of the markup: the case of Slovenian manufacturing
title_fullStr Planned growth as a determinant of the markup: the case of Slovenian manufacturing
title_full_unstemmed Planned growth as a determinant of the markup: the case of Slovenian manufacturing
title_short Planned growth as a determinant of the markup: the case of Slovenian manufacturing
title_sort planned growth as a determinant of the markup the case of slovenian manufacturing
url http://www.ebrjournal.net/ojs/index.php/ebr/article/view/12
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AT ninaponikvar plannedgrowthasadeterminantofthemarkupthecaseofslovenianmanufacturing