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Estimating Market Power of Agricultural and Food Industries: An Issue of Data Aggregation Bias

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  • Lee, Jungmin
  • Chung, Chanjin

Abstract

This paper shows that aggregation bias is generated by ignoring the parameter heterogeneity and using linearly aggregated data for nonlinear macro model with traditional NEIO approach. The aggregation bias can be minimized by imposing market share data to estimation process of conjectural elasticity.

Suggested Citation

  • Lee, Jungmin & Chung, Chanjin, 2015. "Estimating Market Power of Agricultural and Food Industries: An Issue of Data Aggregation Bias," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205571, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205571
    DOI: 10.22004/ag.econ.205571
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    References listed on IDEAS

    as
    1. Stoker, Thomas M, 1993. "Empirical Approaches to the Problem of Aggregation Over Individuals," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1827-1874, December.
    2. Appelbaum, Elie, 1982. "The estimation of the degree of oligopoly power," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 287-299, August.
    3. Chanjin Chung & Harry M. Kaiser, 2002. "Advertising Evaluation and Cross-Sectional Data Aggregation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 800-806.
    Full references (including those not matched with items on IDEAS)

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