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

Mary L Streitwieser

Working Papers from U.S. Census Bureau, Center for Economic Studies

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.

Keywords: CES; economic; research; micro; data; microdata; chief; economist (search for similar items in EconPapers)
Date: 1990-08
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Citations: View citations in EconPapers (3)

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