Publications [#238063] of Allan Collard-Wexler

Journal Articles

1. Collard-Wexler, A, Demand fluctuations in the ready-mix concrete industry, Econometrica, vol. 81 no. 3 (May, 2013), pp. 1003-1037, The Econometric Society, ISSN 0012-9682 [doi]
   (last updated on 2024/04/17)

   Abstract:
   I investigate the role of demand shocks in the ready-mix concrete industry. Using Census data on more than 15,000 plants, I estimate a model of investment and entry in oligopolistic markets. These estimates are used to simulate the effect of eliminating short-term local demand changes. A policy of smoothing the volatility of demand has a market expansion effect: The model predicts a 39% increase in the number of plants in the industry. Since bigger markets have both more plants and larger plants, a demand-smoothing fiscal policy would increase the share of large plants by 20%. Finally, the policy of smoothing demand reduces entry and exit by 25%, but has no effect on the rate at which firms change their size. © 2013 The Econometric Society.