Panel Data Estimation Techniques and Mark Up Ratios
The purpose of this paper is to evaluate the market power of the Greek manufacturing and services industry over the period 1970-2007. In particular, the empirical model, estimates the mark-up ratio following the Roeger (1995) methodology, separately for the two industries by using Ordinary Least Squares (OLS) and Two Stage Ordinary Least Squares (TSLS) in two unbalanced panel data sets. The sample comprises a total of 23 and 26 two-digit NACE codes. The empirical results indicate the existence of significant market power in the Greek manufacturing and services industry. Moreover, mark-up ratios vary significantly between the two industries, with services having higher mark ups than manufacturing.