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Concentration and market size: lower bound estimates for the Brazilian industry

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  • Marcelo Resende

    ()
    (Instituto de Economia, Universidade Federal do Rio de Janeiro)

Abstract

The paper estimates the lower bound for market concentration taking as reference the framework advanced by Sutton (1991). Quantile regression methods were considered in the context of the Brazilian manufacturing industry in 2005 and separate estimates were obtained for exogenous and endogenous sunk cost industries. The evidence favoured a convergence of the concentration lower bound towards zero in exogenous sunk costs industries in line with previous empirical evidence for developed countries. In contrast, the magnitude was similar in the case of endogenous sunk cost industries what might reflect the low technological effort in that emerging economy

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File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I3-P91.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 29 (2009)
Issue (Month): 3 ()
Pages: 2465-2471

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Handle: RePEc:ebl:ecbull:eb-09-00222

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Keywords: concentration market size;

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  1. Kannebley, Sergio Jr. & Porto, Geciane S. & Pazello, Elaine Toldo, 2005. "Characteristics of Brazilian innovative firms: An empirical analysis based on PINTEC--industrial research on technological innovation," Research Policy, Elsevier, vol. 34(6), pages 872-893, August.
  2. Gorg, Holger & Strobl, Eric & Ruane, Frances, 2000. " Determinants of Firm Start-Up Size: An Application of Quantile Regression for Ireland," Small Business Economics, Springer, vol. 14(3), pages 211-22, May.
  3. Schmalensee, Richard, 1989. "Inter-industry studies of structure and performance," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 16, pages 951-1009 Elsevier.
  4. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
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