Measuring Market Power Exertion in the U.S. Ethanol Industry

Juan J. Monge

No 61364, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

Abstract: The objective of this study is to investigate potential market power exertion in the output market of the ethanol-producing sector using the Solow Residual-Based (SRB) test and its different modalities (primal and primal-dual). The markup estimates (Lerner’s index) obtained using ethanol imports and processed crudel oil as instrumental variables to estimate the primal SRB are compared to the primal-dual SRB estimates. For both approaches, a statistically significant positive markup was estimated implying the presense of market power exertion. Both markup estimates are relatively close to each other.

Keywords: Industrial Organization; Productivity Analysis (search for similar items in EconPapers)
Pages: 1
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:61364

DOI: 10.22004/ag.econ.61364

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