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SUMMARIZE THE BELOW TEXT IN 120 WORDS. To measure the effects of trade liberalization on markups, we calculate the price-cost ratio as in De Loecker

SUMMARIZE THE BELOW TEXT IN 120 WORDS.

To measure the effects of trade liberalization on markups, we calculate the price-cost ratio as in De Loecker and Warzynski (2012):

pe Bm exp(mit ) (2) with Sit = Hit M exp(rit - Eit) MC Sit it

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