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Government and industry performance: a comparative study


  • Keith Hartley
  • Richard White
  • David Chaundy


A number of UK industries are heavily dependent on the government as a major purchaser. The Ministry of Defence and the National Health Service are essentially monopsonists for the industries supplying them. As a monopsonist, government can influence the size, structure, conduct and performance of the industries. This paper examines wheather industries relying heavily on government purchases will differ in their structure, conduct and performance-characteristics and whether dependence on goverment can have favourable or adverse effects on industry performance. The hypothesis is tested by comparing the performance of industries dependent on government purchasing - defence, pharmaceuticals and medical equipment - with a control group of other non-dependent industries.

Suggested Citation

  • Keith Hartley & Richard White & David Chaundy, 1997. "Government and industry performance: a comparative study," Applied Economics, Taylor & Francis Journals, vol. 29(9), pages 1227-1237.
  • Handle: RePEc:taf:applec:v:29:y:1997:i:9:p:1227-1237
    DOI: 10.1080/00036849700000013

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    Cited by:

    1. Kari, Fatimah & Jaafar, Abdul H. & Allen, Albert J. & Couvillion, Warren C., 2002. "Market Structure, Market Share, And Profits In The Surface Freight Industry," 2002 Annual meeting, July 28-31, Long Beach, CA 19757, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Aidan R. Vining, 2016. "What Is Public Agency Strategic Analysis (PASA) and How Does It Differ from Public Policy Analysis and Firm Strategy Analysis?," Administrative Sciences, MDPI, Open Access Journal, vol. 6(4), pages 1-31, December.

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