UK Firms Widening Profit Margins Amidst Rising Costs (2020-2023)
Contrary to the simple WS-PS model's prediction of a stable profit share, empirical data for the UK from 2020 to 2023 shows that firms were able to increase their profit margins. During this period of rising costs, the aggregate profit share of GDP grew by about one percentage point, suggesting that firms not only passed on higher costs but also enhanced their profitability, possibly due to increased market power.
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UK Firms Widening Profit Margins Amidst Rising Costs (2020-2023)
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UK Firms Widening Profit Margins Amidst Rising Costs (2020-2023)
Learn After
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