Exit from the Meatpacking Industry: A Microdata Analysis
We model the determinants of plant exit from the cattle-slaughter industry using probit to distinguish between plant-level (e.g., age, scale, and scope) and market-level (e.g., market share, concentration, and competitive fringe) factors. Market variables are shown to be less important determinants of exit than plant-level factors, though a significant tendency for very small plants to exit already highly concentrated markets is apparent. Government actions to stem the industry's consolidation must consider the trade-off between welfare gains from the reduction of market power and welfare losses from foregone technological efficiency improvements. Copyright 1998, Oxford University Press.
Year of publication: |
1998
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Authors: | Anderson, Donald W. ; Murray, Brian C. ; Teague, Jackqueline L. ; Lindrooth, Richard C. |
Published in: |
American Journal of Agricultural Economics. - Agricultural and Applied Economics Association - AAEA. - Vol. 80.1998, 1, p. 96-106
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Publisher: |
Agricultural and Applied Economics Association - AAEA |
Saved in:
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