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The Extent and Nature of Establishment Level Diversification in Sixteen U.S. Manufacturing Industries

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  • Mary L Streitwieser

Abstract

This paper examines the heterogeneity of establishments in sixteen manufacturing industries. Basic statistical measures are used to decompose product diversification at the establishment level into industry, firm, and establishment effects. The industry effect is the weakest; nearly all the observed heterogeneity is establishment specific. Product diversification at the establishment level is idiosyncratic to the firm. Establishments within a firm exhibit a significant degree of homogeneity, although the grouping of products differ across firms. With few exceptions, economies of scope and scale in production appear to play a minor role in the establishment's mix of outputs.

Suggested Citation

  • Mary L Streitwieser, 1990. "The Extent and Nature of Establishment Level Diversification in Sixteen U.S. Manufacturing Industries," Working Papers 90-8, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:90-8
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    References listed on IDEAS

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    Cited by:

    1. Joe Mattey, 1993. "Evidence on IO Technology Assumptions From the Longitudinal Research Database," Working Papers 93-8, Center for Economic Studies, U.S. Census Bureau.
    2. John Haltiwanger & Steven J Davis & Scott Schuh, 1991. "Published Versus Sample Statistics From The ASM: Implications For The LRD," Working Papers 91-1, Center for Economic Studies, U.S. Census Bureau.
    3. Sang V Nguyen & Robert H Mcguckin & Arnold P Reznek, 1995. "The Impact Of Ownership Change On Employment, Wages, And Labor Productivity In U.S. Manufacturing 1977-87," Working Papers 95-8, Center for Economic Studies, U.S. Census Bureau.

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