ABSTRACT
The decrease in competition, the increase in common ownership and the rise of inequality are well documented but still no paper has related common ownership to inequality. This paper provides empirical evidence from structural estimation that common ownership contributes to the increase in income inequality through declining competition given the common ownership hypothesis is true; we propose and try to give quantitative answers to the following questions: 1) What percent of the increase in the share of profits (increase in markups) in the last 3 decades is due to the increase in common ownership? 2) What part of the increase in income inequality was due to common ownership? According to our model, that relies on common ownership hypothesis, the rise of common ownership contributed to an increase in markups from 1.09 to 1.58, and to an increase in total income Gini coe cient from 27.62 to 41.73.
Hambardzumyan, Hayk, Common Ownership and Inequality (November 18, 2022), Dissertation: Essays in Financial Economics https://dx.doi.org/10.7302/8343.
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