The Response by the Norwegian Aluminium Industry to Changing Market Structure
AbstractThis paper analyses how changes in market structure have affected the margins (measured by the Lerner index) of Norwegian aluminium plants. Instead of showing the expected negative trend, due to increased competition internationally, the margins are found to move procyclically around a constant that significantly exceeds zero. Three explanations for this stability in the levels of the margins are identified; a better exploitation of scale economies, increased productivity and product specialisation which allows Norwegian producer prices to increase more rapidly than the international reference price.
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Bibliographic InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 237.
Date of creation: Oct 1998
Date of revision:
Lerner index; Translog cost function; Aluminium industry; Differentiated products;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
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