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A dynamic analysis of the size distribution of firms: The case of the US dairy industry
Author(s) -
Chavas JeanPaul,
Magand Gilbert
Publication year - 1988
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(198807)4:4<315::aid-agr2720040403>3.0.co;2-2
Subject(s) - distribution (mathematics) , dairy industry , econometrics , markov chain , economics , econometric model , production (economics) , aggregate (composite) , industrial organization , markov process , microeconomics , statistics , mathematics , mathematical analysis , chemistry , materials science , food science , composite material
This article develops a time‐varying Markov process of the aggregate size distribution of firms in an industry. This is used to specify and estimate an econometric model of the regional evolution of the number and size of US dairy farms. The empirical results provide evidence concerning the effects of milk price and feed cost on the structure of dairy production in selected regions.