Short-Run Equilibrium and Market Power in the Spanish Food, Drink and Tobacco Industries

Joaquin A Millan

European Review of Agricultural Economics, 1999, vol. 26, issue 2, 229-43

Abstract: This paper studies the cost structure and market power of 18 Spanish food industries, at roughly the three-digit level, for the period 1978-1992. Tests of capital equilibrium and approaches to estimation of the Lerner index are developed. Long-run equilibrium is rejected for almost all industries. It is argued that, in general, economies of scale and market power are not jointly identifiable in the structural analysis, with similar problems as in non-structural approaches. Moreover, when long-run equilibrium and constant returns to scale are assumed, the econometric estimates of the Lerner index are similar to those obtained with the traditional profit-to-sales ratio, irrespective of whether capital is a quasi-fixed or a variable input. Copyright 1999 by Oxford University Press.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (8)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:erevae:v:26:y:1999:i:2:p:229-43

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

More articles in European Review of Agricultural Economics from Oxford University Press and the European Agricultural and Applied Economics Publications Foundation Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().