Exit from the Meatpacking Industry: A Microdata Analysis
AbstractWe 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.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 80 (1998)
Issue (Month): 1 ()
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- Muth, Mary K. & Karns, Shawn A. & Wohlgenant, Michael K. & Anderson, Donald W., 2002. "Exit Of Meat Slaughter Plants During Implementation Of The Pr/Haccp Regulations," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(01), July.
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- Brester, Gary W. & Marsh, John M., 2001. "The Effects Of U.S. Meat Packing And Livestock Production Technologies On Marketing Margins And Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(02), December.
- Marsh, John M. & Brester, Gary W., 1999. "Technological Change In The U.S. Beef And Pork Sectors: Impacts On Farm-Wholesale Marketing Margins And Livestock Prices," Trade Research Center Research Discussion Papers 29242, Montana State University, Department of Agricultural Economics and Economics.
- Brady, Michael P. & Marsh, Thomas L., 2013. "Do Changes in Orchard Supply Occur at the Intensive or Extensive Margin of the Landowner?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150452, Agricultural and Applied Economics Association.
- Ollinger, Michael & Mueller, Valerie, 2003. "Managing For Safer Food: The Economics Of Sanitation And Process Controls In Meat And Poultry Plants," Agricultural Economics Reports 33975, United States Department of Agriculture, Economic Research Service.
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