Pass-through in a concentrated industry: empirical evidence and regulatory implications.

We estimate pass-through with 30 years of data from the portland cement industry. Robust econometric evidence supports that fuel cost changes are more than fully transmitted downstream in the form of price changes. This validates an implicit pass-through assumption made in recent academic research a...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 48; no. 1; pp. 69 - 94
Autores principales: Miller, Nathan H., Osborne, Matthew, Sheu, Gloria
Formato: Artículo
Publicado: Wiley-Blackwell Spring2017
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Pass-through in a concentrated industry: empirical evidence and regulatory implications.
      aug:
        au:
          Miller, Nathan H.
          Osborne, Matthew
          Sheu, Gloria
        affil:
          Georgetown University
          University of Toronto
          Department of Justice
      su:
        Econometrics
        Prices
        Portland cement industry
        Atmospheric carbon dioxide
        Emissions (Air pollution)
        Cement
        Fuel costs
      sug:
        subj:
          Econometrics
          Prices
          Other specialty-line building supplies merchant wholesalers
          Cement Manufacturing
          Fuel Dealers
          Other fuel dealers
          Portland cement industry
          Atmospheric carbon dioxide
          Emissions (Air pollution)
          Cement
          Fuel costs
      ab: We estimate pass-through with 30 years of data from the portland cement industry. Robust econometric evidence supports that fuel cost changes are more than fully transmitted downstream in the form of price changes. This validates an implicit pass-through assumption made in recent academic research and regulatory analyses. We combine the econometric results with estimates of competitive conduct obtained from the literature to evaluate the incidence of market-based CO regulation. Producers bear roughly 11% of the regulatory burden and could be compensated with 16% of the revenues obtained.
      pubtype: Academic Journal
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    language: English
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