Scale Economies and Consolidation in Hog Slaughter
AbstractWe use establishment based panel data to estimate a cost function which identifies the role of scale economies in hog slaughter consolidation. We find modest by extensive technological scale economies in the 1990s, and they became more important over time. But wages rose sharply with plant size through the 1970s and those wage premiums generated a pecuniary scale diseconomy that largely offset the effects of technological scale economies. The size-wage relation disappeared in the 1980; with growing technological scale economies and disappearing pecuniary diseconomies, large plants realized growing cost advantages over smaller plants, and production shifted to larger plants.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 00-03.
Date of creation: Mar 2000
Date of revision:
CES; economic; research; micro; data; microdata; chief; economist;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Melton, Brian & Huffman, Wallace, 1995. "Beef and Pork Packing Costs and Input Demands: Effects of Unionization and Technology," Staff General Research Papers 5043, Iowa State University, Department of Economics.
- Gallant, A. Ronald & Jorgenson, Dale W., 1979. "Statistical inference for a system of simultaneous, non-linear, implicit equations in the context of instrumental variable estimation," Journal of Econometrics, Elsevier, vol. 11(2-3), pages 275-302.
- Hayenga, Marvin L., 1998. "Cost Structures of Pork Slaughter and Processing Firms: Behavioral and Performance Implications," Staff General Research Papers 1254, Iowa State University, Department of Economics.
- Stevenson, Rodney, 1980. "Measuring Technological Bias," American Economic Review, American Economic Association, vol. 70(1), pages 162-73, March.
- Allen, W Bruce & Liu, Dong, 1995. "Service Quality and Motor Carrier Costs: An Empirical Analysis," The Review of Economics and Statistics, MIT Press, vol. 77(3), pages 499-510, August.
- Lee, Chinkook & Schluter, Gerald E., 2001. "Consolidation, Economies Of Scale, And The Heckshcer-Ohlin Theory Of Trade - An Empirical Analysis Of Us Meat Processing Industry," International Trade in Livestock Products Symposium, January 18-19, 2001, Auckland, New Zealand 14559, International Agricultural Trade Research Consortium.
- Michael G. Hogberg & Kellie Curry Raper & James F. Oehmke, 2009. "Banning subtherapeutic antibiotics in U.S. swine production: a simulation of impacts on industry structure," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 314-330.
- Ollinger, Michael & Ralston, Katherine L. & Guthrie, Joanne F., 2012. "Location, School Characteristics, and the Cost of School Meals," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(3), December.
- Aguero, Jorge M. & Gould, Brian W., 2004. "Structural Change In U.S. Cheese Manufacturing: A Translog Cost Analysis Of A Panel Of Cheese Plants," 2004 Annual meeting, August 1-4, Denver, CO 20274, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Kim, C.S. & McElroy, Robert G. & Mishra, Ashok K. & Hallahan, Charles B., 2002. "Biased Biased Technological Progress In The U.S. Farm Sector: A Structural Perspective," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36526, Western Agricultural Economics Association.
- Ward, Clement E., 2002. "A Review of Causes for and Consequences of Economic Concentration in the U.S. Meatpacking Industry," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 03.
- MacDonald, James M., 2002. "Agribusiness Concentration, Competition And Nafta," Structural Change as a Source of Trade Disputes Under NAFTA; Proceedings of the 7th Agricultural and Food Policy Systems Information Workshop - 2001 16883, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
- Christian Genthon, 2007. "Can we measure Microsoft's market power ?," Post-Print halshs-00153837, HAL.
- Gervais, Jean-Philippe, 2007.
"Disentangling non-linearities in the long- and short-run price relationships: An application to the U.S. hog/Pork supply chain,"
7743, University Library of Munich, Germany, revised 15 Jan 2008.
- Jean-Philippe Gervais, 2011. "Disentangling nonlinearities in the long- and short-run price relationships: an application to the US hog/pork supply chain," Applied Economics, Taylor and Francis Journals, vol. 43(12), pages 1497-1510.
- Philip L. Paarlberg & Mildred M. Haley, 2001. "Market concentration and vertical coordination in the pork industry: Implications for public policy analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 17(2), pages 197-212.
- Ollinger, Michael, 2009. "The Cost of Food Safety Technologies in the Meat and Poultry Industries," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 48783, Agricultural and Applied Economics Association.
- Gervais, Jean-Philippe & Bonroy, Olivier & Couture, Steve, 2006. "Economies of Scale in the Canadian Food Processing Industry," MPRA Paper 64, University Library of Munich, Germany.
- Jean-Philippe Gervais & Olivier Bonroy & Steve Couture, 2008.
"A province-level analysis of economies of scale in Canadian food processing,"
John Wiley & Sons, Ltd., vol. 24(4), pages 538-556.
- Gervais, J.P. & Bonroy, O. & Couture, S., 2007. "A province-level analysis of economies of scale in Canadian food processing," Working Papers 200710, Grenoble Applied Economics Laboratory (GAEL).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fariha Kamal).
If references are entirely missing, you can add them using this form.