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

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.


Issue Date:
2010
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/61364
Total Pages:
1
Series Statement:
Poster
11807




 Record created 2017-04-01, last modified 2017-08-25

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