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Market concentration and productivity in the United States corn sector: 2002-2009

Author

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  • Nolan, Elizabeth
  • Santos, Paulo
  • Shi, Guanming

Abstract

There is a large literature which investigates the relationship between market concentration and innovation. It is difficult to find a suitable measure for innovative output. We use a rich dataset based on university trials of corn hybrids to estimate, using fixed effects, a production function. We predict the fixed effects, by year and Crop Reporting District (CRD), for each hybrid to identify the amount of yield that is directly related to the genetics of the hybrids. We combine this dataset with one which provides information for market concentration, and find, using two stage least squares, that there is a positive relationship between market concentration and innovation.

Suggested Citation

  • Nolan, Elizabeth & Santos, Paulo & Shi, Guanming, 2012. "Market concentration and productivity in the United States corn sector: 2002-2009," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125941, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea12:125941
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    File URL: http://purl.umn.edu/125941
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    References listed on IDEAS

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    Keywords

    corn hybrids; innovation; instrumental variables; market concentration.; Industrial Organization; Production Economics; Productivity Analysis;

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