A stochastic frontier estimator of the aggregate degree of market power exerted by the U.S. beef and pork packing industries Report as inadecuate




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Abstract

The objective of this study is to measure the amount of market powerexercised by the U.S. red meatpacking industry using the recently developedstochastic frontier estimator of market power. The aggregate degree of marketpower in both the input market cattle and hogs and the output market beefand pork is estimated using annual time series data for the period 1970-2009. The empirical results reveal that the farm-to-wholesale price spread is4.91% and 4.16% above the marginal processing costs, in the beef and porkpacking industries, respectively. These findings indicate that rather a smallpercentage of the farm-to-wholesale price spread can be attributed to marketpower in both U.S. meat packing sectors.



Item Type: MPRA Paper -

Original Title: A stochastic frontier estimator of the aggregate degree of market power exerted by the U.S. beef and pork packing industries-

English Title: A stochastic frontier estimator of the aggregate degree of market power exerted by the U.S. beef and pork packing industries-

Language: English-

Keywords: beef; pork; stochastic frontier analysis; market power-

Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: GeneralL - Industrial Organization > L6 - Industry Studies: Manufacturing > L66 - Food ; Beverages ; Cosmetics ; Tobacco ; Wine and SpiritsQ - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q11 - Aggregate Supply and Demand Analysis ; Prices-





Author: Panagiotou, Dimitrios

Source: https://mpra.ub.uni-muenchen.de/76136/







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