Establishment Survivorship in U.S. Manufacturing, 1987–1992

John Howard Brown ()
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John Howard Brown: Georgia Southern University

Review of Industrial Organization, 2018, vol. 53, issue 2, No 4, 347-366

Abstract: Abstract In this paper the survivor technique is employed to study American manufacturing establishments in four-digit SIC industries. A major finding is that “down-sizing” during the late 1980s is more than anecdotal. Survivor estimates of economies of scale using the 1987 and 1992 Censuses of Manufactures clearly illustrate a general movement toward smaller scales. Moving beyond prior survivor studies, the sources of changes in scale are investigated. However, increases in either number of establishments or value added had a statistically significant effect on the occurrence of a change in scale, respectively decreasing or increasing the likelihood of change. The HHI of the industry also had a significant positive effect on the likelihood of a significant change in scale of output.

Keywords: Down-sizing; Economies of scale; Survivor technique (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/s11151-018-9613-4

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