{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,9,1]],"date-time":"2026-09-01T10:18:37Z","timestamp":1788257917347,"version":"build-2803163510"},"update-to":[{"DOI":"10.12688\/f1000research.160674.1","type":"new_version","label":"New version","source":"publisher","updated":{"date-parts":[[2026,8,27]],"date-time":"2026-08-27T00:00:00Z","timestamp":1787788800000}},{"DOI":"10.12688\/f1000research.160674.2","type":"new_version","label":"New version","source":"publisher","updated":{"date-parts":[[2026,8,27]],"date-time":"2026-08-27T00:00:00Z","timestamp":1787788800000}},{"DOI":"10.12688\/f1000research.160674.3","type":"new_version","label":"New version","source":"publisher","updated":{"date-parts":[[2026,8,27]],"date-time":"2026-08-27T00:00:00Z","timestamp":1787788800000}}],"reference-count":32,"publisher":"F1000 Research Ltd","license":[{"start":{"date-parts":[[2026,8,27]],"date-time":"2026-08-27T00:00:00Z","timestamp":1787788800000},"content-version":"tdm","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":["f1000research.com"],"crossmark-restriction":false},"short-container-title":["F1000Res"],"abstract":"<ns3:p>Background This study investigates the connection between aggregate markups and income inequality, exploring how market power affects inequality in developed, emerging, and developing economies. Method The study examines data from 12 countries from 1997 to 2016 using a panel data approach. A two-way fixed-effects specification is estimated after panel diagnostics for cross-sectional dependence, model selection, unit roots and cointegration. The analysis focuses on the Gini index, lagged markups, trade openness, GDP per capita, tax revenue and R&amp;D expenditure. Results Higher lagged markups are associated with greater income inequality, with the relationship particularly relevant for emerging and developing economies. Diagnostic checks support the use of fixed effects over random effects, while unit-root and cointegration tests indicate that the levels model should be interpreted as a long-run relationship rather than as a purely short-run association. Conclusion The study shows how market power, fiscal redistribution and trade openness interact across diverse economic systems. The findings support competition policy and progressive taxation as complementary tools, while acknowledging that further dynamic panel and error-correction modelling would strengthen causal interpretation.<\/ns3:p>","DOI":"10.12688\/f1000research.160674.4","type":"journal-article","created":{"date-parts":[[2026,9,1]],"date-time":"2026-09-01T09:59:06Z","timestamp":1788256746000},"page":"184","update-policy":"https:\/\/doi.org\/10.12688\/f1000research.crossmark-policy","source":"Crossref","is-referenced-by-count":0,"title":["Cross-country analysis of aggregate markups and their impact on income inequality."],"prefix":"10.12688","volume":"14","author":[{"ORCID":"https:\/\/orcid.org\/0000-0001-7947-9015","authenticated-orcid":false,"given":"Peter","family":"Malliaros","sequence":"first","affiliation":[{"name":"Research Melbourne VIC 3051 UrCommunity Ltd"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-4208-5546","authenticated-orcid":false,"given":"W Alejandro","family":"Pacheco-Jaramillo","sequence":"additional","affiliation":[{"name":"Economics Huixquilucan de Degollado State of Mexico 52786 University Anahuac"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"2560","published-online":{"date-parts":[[2026,8,27]]},"reference":[{"key":"ref1","doi-asserted-by":"crossref","first-page":"407-420","DOI":"10.1017\/S0003055422000740","article-title":"Weak, despotic, or inclusive? 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We have addressed cross-sectional dependence (Pesaran\u2019s test), non-stationarity (IPS\/CIPS), and cointegration (Westerlund\u2019s test), while clarifying variable lag structures to align with theoretical persistence and endogeneity mitigation. These revisions significantly strengthen the robustness and transparency of our analysis.","URL":"https:\/\/f1000research.com\/articles\/14-184\/v4#referee-comment-13773","order":2,"name":"referee-comment-13773","label":"Referee Comment","group":{"name":"article-reports","label":"Article Reports"}},{"value":"<b>William Pacheco<\/b>; \n<i>Posted: 06 Jan 2026<\/i>; Thank you very much for your valuable feedback. We have made the necessary revisions to address the points you raised. Please note that due to an oversight, I mistakenly sent the changes to Reviewer 1 instead of you. I apologize for any confusion caused, and I greatly appreciate your patience.  Regarding your comments:  Pesaran\u2019s Scaled (LM) Test and Random Effects Model: We have implemented Pesaran\u2019s scaled (LM) test (Pesaran, 2004), as well as the corrections by Pesaran, Ullah, and Yamagata (2008), to detect cross-sectional dependence across the panel entities. Based on the test results, we have confirmed that a random effects model is not more suitable than the fixed effects model. We have updated the paper to reflect this change and have included the diagnostic tests as per your suggestion. Unit Root Tests: We have conducted the Im, Pesaran, and Shin (2003) test, as well as the Pesaran (2007) test, to check for non-stationarity and potential unit roots. The results suggest that some of the series are indeed non-stationary, and we have accordingly tested for cointegration using Westerlund\u2019s (2007) panel cointegration test. We have found evidence of cointegration, and the long-run relationship is now properly integrated into the model. Methodological Approach and Model Formulation: Regarding the omission of the variable at time t and the cross-product between innovation and markup at time t-1, we have clarified these points in the revised manuscript. We have explained that the lagged value of the markup ratio was included to capture the dynamic nature of markups in relation to income inequality, while omitting the variable at time t due to theoretical considerations of its diminishing effect in our model. The inclusion of only the cross-product at t-1 is based on theoretical grounds, which we have now elaborated on in the revised version of the paper. Statement on Model Suitability: We have rephrased the statement on page 18, acknowledging that while our model is the best available given the current data and methodological considerations, we recognize the potential inefficiencies due to the presence of unit roots. This statement has been revised to reflect a more balanced view of the model\u2019s strengths and limitations.  We believe that the revisions have strengthened the methodological robustness of the paper, and we hope that the changes meet your expectations.  Once again, thank you for your thoughtful and constructive comments. We look forward to receiving your feedback on the revised manuscript.","URL":"https:\/\/f1000research.com\/articles\/14-184\/v4#referee-comment-15215","order":3,"name":"referee-comment-15215","label":"Referee Comment","group":{"name":"article-reports","label":"Article Reports"}},{"value":"10.5256\/f1000research.194943.r516245, Thanh Huu Phu Nguyen, Department of Finance and Accounting Management, Ho Chi Minh City University of Law, Ho Chi Minh City, 01 Sep 2026, version 4, indexed","URL":"https:\/\/f1000research.com\/articles\/14-184\/v4#referee-response-516245","order":4,"name":"referee-response-516245","label":"Referee Report","group":{"name":"article-reports","label":"Article Reports"}},{"value":"The author(s) declared that no grants were involved in supporting this work","order":5,"name":"grant-information","label":"Grant Information"},{"value":"This is an open access article distributed under the terms of the Creative Commons Attribution Licence, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.","order":0,"name":"copyright-info","label":"Copyright"}]}}