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A Markov Chain Analysis of Structural Changes in the Texas High Plains Cotton Ginning Industry

Published online by Cambridge University Press:  28 April 2015

Don E. Ethridge ,
Sujit K. Roy  and
David W. Myers
Don E. Ethridge
Affiliation:
Agricultural Economics Department, Texas Tech University
Sujit K. Roy
Affiliation:
Agricultural Economics Department, Texas Tech University
David W. Myers
Affiliation:
Agricultural Economics Department, Texas Tech University
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Abstract

Markov chain analysis of changes in the number and size of cotton gin firms in West Texas was conducted assuming stationary and non-stationary transition probabilities. Projections of industry structure were made to 1999 with stationary probability assumptions and six sets of assumed conditions for labor and energy costs and technological change in the non-stationary transition model. Results indicate a continued decline in number of firms, but labor, energy, and technology conditions alter the configuration of the structural changes.

Keywords

Markov chaincotton ginningindustry structure

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Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 17 , Issue 2 , December 1985 , pp. 11 - 20
Copyright
Copyright © Southern Agricultural Economics Association 1985

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