Advanced Search
MyIDEAS: Login to save this paper or follow this series

Tests of market power in Irish Manufacturing Industries


Author Info

  • Gerry Boyle

    (NUI Maynooth)

Registered author(s):


    It’s been a long-standing assumption that Irish manufacturing firms are price takers in their output markets. This assumption has been validated by several aggregate level studies. While a much smaller number of studies have examined this issue at a more disaggregated level, they tend to support this conclusion. All of these studies also assume that firms are price takers in their input markets, or, in other words inputs are perfectly elastically supplied to firms. This assumption, however, has never been formally tested. There is intrinsic interest in the context of competition law in ascertaining evidence of deviations from perfect competition in sales of product and purchases of inputs. Moreover the introduction of minimum wages provides an important additional motivation for the topic of this paper, since it is well known that the introduction of minimum wages or increases in the level of minimum wages can lead to increases in employment over a certain range of wages if the firm possesses market power in its labour market. By using four-digit level Census of Industrial Production (CIP) panel data the paper sets out to test the extent of potential market power in Irish manufacturing industries. The paper employs the ingenious method proposed by Hall and later modified by Roeger in this exercise. While the Hall-Roeger method was originally concerned with imperfect competition in output markets, it can be readily extended to input markets. The empirical results do not indicate much evidence of significant imperfect competition in output markets but the results do point to evidence of market power in certain input markets and in some industrial sectors. The implications of these findings are discussed.

    Download Info

    If 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.
    File URL:
    Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify ()
    Download Restriction: no

    Bibliographic Info

    Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n1210503.pdf.

    as in new window
    Length: 26 pages
    Date of creation: 2003
    Date of revision:
    Handle: RePEc:may:mayecw:n1210503.pdf

    Contact details of provider:
    Postal: Maynooth, Co. Kildare
    Phone: 353-1-7083728
    Fax: 353-1-7083934
    Web page:
    More information through EDIRC

    Related research

    Keywords: market power; imperfect competition; minimum wages; anti-trust legislation; econometric tests.;

    Find related papers by JEL classification:


    No references listed on IDEAS
    You can help add them by filling out this form.



    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:may:mayecw:n1210503.pdf. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.