Market Structure Conduct Performance Hypothesis Revisited Using Stochastic Frontier Efficiency Analysis
AbstractStochastic frontier analysis, which is used to estimate the technical efficiency, is extended to examine the market structure, conduct and performance hypothesis for the U.S. trucking industry. The technical efficiency measure takes into account not only the relationship between inputs used in the production of output but also simultaneously examine the importance of market structure conduct factors on the performance of the firm. An empirical application to U.S. trucking carriers over the period 1994-2003 is examined. Results reveal that the variables average haul, average load, debt-to-equity and market concentration significantly affected technical efficiency. Capital, fixed and variable input variables were significant in the production function equation.
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Bibliographic InfoPaper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agribusiness & Applied Economics Report with number 55121.
Date of creation: Sep 2009
Date of revision:
Demand and Price Analysis; Marketing;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-05 (All new papers)
- NEP-COM-2009-12-05 (Industrial Competition)
- NEP-EFF-2009-12-05 (Efficiency & Productivity)
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