Application of Hall-Roger model in measuring the profit margin of basic metals industry

In this paper, using the Hall-Roger model, the market In this paper, using the Hall-Roger model, the market structure of the base metals industry has been studied. The main purpose of this study was to measure the profit-price margin. For this purpose, data of 4 active base metals industries with a four-digit ISIC code over the period 2004-2017 were used. The results showed that in all four industries the price was more than the marginal cost and the price-cost gap in the entire industry was estimated at about 0.39. Also, the precious base metals and other non-ferrous metals industries had the highest Lerner index (0.76) and high market power, and the non-ferrous metals casting industry had the lowest Lerner index (0.137) and markup (1.16). In addition, the results show that in half of the base metals industry, the concentration ratio of the top four firms was more than 40% and in the other half it was less than that.