The influence of secondary production on industry definition in the extended vertical market model
定义了二次生产,并研究了其在扩展垂直市场模型估计中的作用,通过联立方程模型分析二次生产对行业利润、主导产品及产能的影响。
Abstract Secondary production is defined and its role in the estimation of an extended vertical market model b examined. Two impacts on the subject industry are identified, called primary product dominance and primary product focus. A simultaneous equations model consisting of a profit equation and two secondary production equations is estimated using data from the interindustry transactions accounts. The profit equation captures the impact on industry profit of secondary production and of extended market structure. The dominance equation captures the relationship between secondary production and industry profit and scale of production. The focus equation captures the relationship between secondary production and industry profit and excess capacity. The model is estimated for all industries, and the common specification is then applied to industries grouped by type.