IDEAS home Printed from https://ideas.repec.org/a/ags/gjagec/98878.html
   My bibliography  Save this article

Die Zyklik der Profite in der Ernährungswirtschaft: Ein internationaler Vergleich

Author

Listed:
  • Korner, Julia
  • Weiss, Christoph R.

Abstract

Based upon the structure-conduct-performance approach the present paper analyses determinants of price-cost-margins over the business cycle for food industries in Germany, the USA as well as the Netherlands. Controlling for market structure variables, cyclical fluctuations in profitability are interpreted as evidence for changes in firm behaviour. The econometric panel data models reveal procyclic fluctuations of profits in highly concentrated industries in Germany. In contrast, profitability in competitive industries in Germany as well as in all US food industries are found to be more stable over the business cycle. This observation is explicable in terms of a more aggressive behaviour of firms in boom periods. The econometric model does not adequately explain industry differences in profitability in the Netherlands.

Suggested Citation

  • Korner, Julia & Weiss, Christoph R., 2001. "Die Zyklik der Profite in der Ernährungswirtschaft: Ein internationaler Vergleich," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 0(Number 3), pages 1-5.
  • Handle: RePEc:ags:gjagec:98878
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/98878/files/16_Koerner.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Cowling, Keith & Waterson, Michael, 1976. "Price-Cost Margins and Market Structure," Economica, London School of Economics and Political Science, vol. 43(171), pages 267-274, August.
    2. Domowitz, Ian & Hubbard, R Glenn & Petersen, Bruce C, 1988. "Market Structure and Cyclical Fluctuations in U.S. Manufacturing," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 55-66, February.
    3. Vlachvei, A. & Oustapassidis, K., 1998. "Advertising, concentration and profitability in Greek food manufacturing industries," Agricultural Economics, Blackwell, vol. 18(2), pages 191-198, March.
    4. Ian Domowitz & R. Glenn Hubbard & Bruce C. Petersen, 1986. "Business Cycles and the Relationship Between Concentration and Price-Cost Margins," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 1-17, Spring.
    5. Imel, Blake & Helmberger, Peter, 1971. "Estimation of Structure-Profit Relationships with Application to the Food Processing Sector," American Economic Review, American Economic Association, vol. 61(4), pages 614-627, September.
    6. Korner, Julia & Weiss, Christoph R., 2001. "Die Zyklik der Profite in der Ernährungswirtschaft: Ein internationaler Vergleich," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 0(Number 3), pages 1-5.
    7. Weiss, C.R., 2000. "Determinanten und Zyklik der Profite im produzierenden Ernährungsgewerbe Deutschlands," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 0.
    8. Green, Edward J & Porter, Robert H, 1984. "Noncooperative Collusion under Imperfect Price Information," Econometrica, Econometric Society, vol. 52(1), pages 87-100, January.
    9. Karl Aiginger & Christoph R. Weiss, 1998. "title{Does it Pay to be Flexible?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 13(5), pages 543-556, October.
    10. Elizabeth J. Warner & Robert B. Barsky, 1995. "The Timing and Magnitude of Retail Store Markdowns: Evidence from Weekends and Holidays," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 321-352.
    11. Viaene, Jacques & Gellynck, Xavier, 1995. "Structure, Conduct and Performance of the European Food Sector," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(3), pages 282-295.
    12. Mark Bils, 1989. "Pricing in a Customer Market," The Quarterly Journal of Economics, Oxford University Press, vol. 104(4), pages 699-718.
    13. Schmalensee, Richard, 1977. "Using the H-Index of Concentration with Published Data," The Review of Economics and Statistics, MIT Press, vol. 59(2), pages 186-193, May.
    14. K. Oustapassidis & A. Vlachvei & O. Notta, 2000. "Efficiency and Market Power in Greek Food Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 623-629.
    15. Schmalensee, Richard, 1989. "Inter-industry studies of structure and performance," Handbook of Industrial Organization,in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 16, pages 951-1009 Elsevier.
    16. Joaquim Oliveira Martins & Stefano Scarpetta, 1999. "The Levels and Cyclical Behaviour of Mark-ups Across Countries and Market Structures," OECD Economics Department Working Papers 213, OECD Publishing.
    17. Ghosal, Vivek, 2000. "Product market competition and the industry price-cost markup fluctuations:: role of energy price and monetary changes," International Journal of Industrial Organization, Elsevier, vol. 18(3), pages 415-444, April.
    18. Geroski, Paul A, 1988. "In Pursuit of Monopoly Power: Recent Quantitative Work in Industrial Economics," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 3(2), pages 107-123, April.
    19. Haskel, Jonathan & Martin, Christopher & Small, Ian, 1995. "Price, Marginal Cost and the Business Cycle," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 25-41, February.
    20. Rotemberg, Julio J & Saloner, Garth, 1986. "A Supergame-Theoretic Model of Price Wars during Booms," American Economic Review, American Economic Association, vol. 76(3), pages 390-407, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Korner, Julia & Weiss, Christoph R., 2001. "Die Zyklik der Profite in der Ernährungswirtschaft: Ein internationaler Vergleich," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 0(Number 3), pages 1-5.
    2. Perekhozhuk, Oleksandr, 2007. "Marktstruktur und Preisbildung auf dem ukrainischen Markt für Rohmilch," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 41, number 92322.
    3. Wittkopp, Antje & Körner, Julia, 2001. "Produktdiversifikation und Profitabilität der deutschen Ernährungswirtschaft: Eine theoretische und empirische Betrachtung," FE Working Papers 0103, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.

    More about this item

    Keywords

    Agribusiness; Industrial Organization;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:gjagec:98878. 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: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/iahubde.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.