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The Extent and Nature of Establishment Level Diversification in Sixteen U.S. Manufacturing Industries

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  • Mary L Streitwieser

Abstract

This paper examines the heterogeneity of establishments in sixteen manufacturing industries. Basic statistical measures are used to decompose product diversification at the establishment level into industry, firm, and establishment effects. The industry effect is the weakest; nearly all the observed heterogeneity is establishment specific. Product diversification at the establishment level is idiosyncratic to the firm. Establishments within a firm exhibit a significant degree of homogeneity, although the grouping of products differ across firms. With few exceptions, economies of scope and scale in production appear to play a minor role in the establishment's mix of outputs.

Suggested Citation

  • Mary L Streitwieser, 1990. "The Extent and Nature of Establishment Level Diversification in Sixteen U.S. Manufacturing Industries," Working Papers 90-8, Center for Economic Studies, U.S. Census Bureau.
  • Handle: RePEc:cen:wpaper:90-8
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    File URL: https://www2.census.gov/ces/wp/1990/CES-WP-90-08.pdf
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    References listed on IDEAS

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    1. Gorecki, Paul K, 1974. "The Measurement of Enterprise Diversification," The Review of Economics and Statistics, MIT Press, vol. 56(3), pages 399-401, August.
    2. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    3. Robert H Mcguckin & George A Pascoe, 1988. "The Longitudinal Research Database (LRD): Status And Research Possibilities," Working Papers 88-2, Center for Economic Studies, U.S. Census Bureau.
    4. Michael Gort, 1962. "Diversification and Integration in American Industry," NBER Books, National Bureau of Economic Research, Inc, number gort62-1, April.
    5. Charles H. Berry, 1974. "Corporate Diversification and Market Structure," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 196-204, Spring.
    6. Goto, Akira, 1981. "Statistical Evidence on the Diversification of Japanese Large Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 29(3), pages 271-278, March.
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    Cited by:

    1. John Haltiwanger & Steven J Davis & Scott Schuh, 1991. "Published Versus Sample Statistics From The ASM: Implications For The LRD," Working Papers 91-1, Center for Economic Studies, U.S. Census Bureau.

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    Keywords

    CES; economic; research; micro; data; microdata; chief; economist;

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