IDEAS home Printed from https://ideas.repec.org/p/ags/saea10/56424.html
   My bibliography  Save this paper

Industry Organization and Output Size Distribution of Cotton Gins in the U.S

Author

Listed:
  • Mutuc, Maria Erlinda M.
  • Hudson, Darren

Abstract

With cotton output declining by 46 percent from 2005-2008 (from 23.89 M bales in 2005 to 12.8 M bales in 2008), gins are processing less cotton. This paper examines how output size distribution of cotton gins in the U.S. has evolved and the extent to which the developments in the U.S. ethanol industry, specifically the passage of the Energy Policy Act in 2005 (and its subsequent revisions), have influenced this structural process. Markov transitional probability matrices (TPMs) are estimated for two periods: 1994-2004 and 2005-2008 to determine changes in output size distribution of gins. TPMs indicate that relative to the pre-2005 period, gins had a greater propensity to process lower outputs after 2005. It is purported that in industries constrained by declining demand, bigger firms with excess capacity operate at higher costs than smaller firms that operate closer to their minimum efficient scale.

Suggested Citation

  • Mutuc, Maria Erlinda M. & Hudson, Darren, 2010. "Industry Organization and Output Size Distribution of Cotton Gins in the U.S," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56424, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea10:56424
    DOI: 10.22004/ag.econ.56424
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/56424/files/Industry%20Organization%20and%20Output%20Size%20Distribution%20of%20Cotton%20Gins%20in%20the%20U.S..pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.56424?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Industrial Organization;
    All these keywords.

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

    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:saea10:56424. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.