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The production structure of food retailing in the United States: An initial inquiry

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Listed:
  • S. M. A. Weliwita

    (Department of Agricultural and Applied Economics, Clemson University, Clemson, South Carolina)

  • Stephen E. Miller

    (Department of Agricultural and Applied Economics, Clemson University, Clemson, South Carolina)

Abstract

A translog cost function is fitted to aggregate data in order to examine substitution patterns among labor, capital, and energy as inputs in US food retailing. The results indicate that labor, capital, and energy are substitutes in the provision of retail food services, with capital and energy being closer substitutions than the other input combinations. The substitution possibilities for labor are limited. Own-price elasticity estimates for labor, capital, and energy are all inelastic, with only the estimate for energy being significantly different from zero.

Suggested Citation

  • S. M. A. Weliwita & Stephen E. Miller, 1992. "The production structure of food retailing in the United States: An initial inquiry," Agribusiness, John Wiley & Sons, Ltd., vol. 8(2), pages 121-130.
    • Handle: RePEc:wly:agribz:v:8:y:1992:i:2:p:121-130
    DOI: 10.1002/1520-6297(199203)8:2<121::AID-AGR2720080204>3.0.CO;2-1
    as

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    References listed on IDEAS

    as
    1. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
    2. Tilley, R P R & Hicks, R, 1970. "Economies of Scale in Supermarkets," Journal of Industrial Economics, Wiley Blackwell, vol. 19(1), pages 1-5, November.
    3. Nooteboom, Bart, 1982. "A new theory of retailing costs," European Economic Review, Elsevier, vol. 17(2), pages 163-186.
    4. Berndt, Ernst R & Wood, David O, 1975. "Technology, Prices, and the Derived Demand for Energy," The Review of Economics and Statistics, MIT Press, vol. 57(3), pages 259-268, August.
    5. Jorgenson, Dale W., 1986. "Econometric methods for modeling producer behavior," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 3, chapter 31, pages 1841-1915, Elsevier.
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