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Economic analysis of the changing structure of the U.S. flour milling industry
Author(s) -
Kim C.S.,
Hallahan C.,
Schaible G.,
Schluter G.
Publication year - 2001
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(200124)17:1<161::aid-agr1008>3.0.co;2-0
Subject(s) - oligopoly , market power , wage , economics , econometrics , market structure , poisson distribution , poisson regression , industrial organization , mathematics , microeconomics , statistics , labour economics , population , demography , cournot competition , sociology , monopoly
This article presents a decomposed Poisson regression model based on count data that evaluates structural changes in size, number of plants in each size class, and the concentration level of market power in the U.S. flour milling industry, simultaneously. Empirical results indicate that the effects of a changing wage rate and corporate bond rate on both the size distribution and the number of flour mills are significant, but in opposite directions. Furthermore, a test for price leadership reveals that the U.S. flour milling industry has an oligopolistic market structure. [Econ‐Lit citations: D430, L110, Q120] © 2001 John Wiley & Sons, Inc.