Hostname: page-component-586b7cd67f-t8hqh Total loading time: 0 Render date: 2024-11-20T09:33:37.106Z Has data issue: false hasContentIssue false
  • English
  • Français

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
Get access Rights & Permissions [Opens in a new window]

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
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

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adelman, I. G. “A Stochastic Analysis of the Size Distribution of Firms.” J. Amer. Stat. Assn., 43(1958):893–904.CrossRefGoogle Scholar
Anderson, T. W. and Goodman, L. A.. “Statistical Inference About Markov Chain.” Annals Math. Stat., 28(1957):89–110.CrossRefGoogle Scholar
Campbell, J. D. “Central Cotton Ginning: Cooperative Cost, Use in Other Countries, and Potential Use in the United States.” United States Department of Agriculture, FCS, 1969.Google Scholar
Cleveland, O. A. Jr.. and Blakley, L. V.. “Optimum Organization of Cotton Ginning and Warehouse Facilities in the Oklahoma-Texas Plains.” Agr. Exp. Sta., Okla. State University, Tech. Bull. T-144, 1976.Google Scholar
Collins, N. R. and Preston, L. B.. “The Size Structure of the Largest Industrial Firms, 1909-1958.” Amer. Econ. Rev., 51 (1961):986–995.Google Scholar
Colman, D. R. “The Application of Markov Chain Analysis to Structure Change in the Northwest Dairy Industry.” Amer. J. Agr. Econ., 18(1967):351–361.CrossRefGoogle Scholar
Ethridge, D. E., Shaw, D. L., and Robinson, J. A.. “An Analysis of Effects of Module Handling Systems on Ginning Costs with Stripper Harvested Cotton.” Natl. Econ. Div., ERS, USDA, and Agr. Econ. Dept., Texas Tech University, College of Agr. Sci. Pub. No. T-1-198; August, 1981.Google Scholar
Ethridge, D. E. and Myers, D. W.. “Excess Capacity in Ginning: Is There Reason for Concern?” 1984 Proceedings of the Beltwide Cotton Research Conferences, Cotton Economics and Marketing Conference, Natl. Cotton Council, pp. 266–269.Google Scholar
Ethridge, M. D. and Branson, R. E.. “Operating Cost for United States Cotton Gins by Location, Plant Size, and Utilization Rates: Impact of an Automatic Feeding System.” Texas Agr. Market Research and Devel. Ctr., Texas A&M University, MRC 77-5, 1977.Google Scholar
Fondren, T. H., Stennis, E. A., and Lamkin, C. J.. “Optimum Organization of Gins and Warehouses for Marketing Cotton in the Mississippi Delta Area of Mississippi.” Miss. Agr. and Forestry Exp. Sta., Miss. State University, AEC-33, 1981.Google Scholar
Fuller, S., and Vastine, W.. “Utilization of New Mexico's Cotton Ginning Capacity, 1970-71” New Mex. Agr. Exp. Sta., Research Bulletin 646, 1975.Google Scholar
Fuller, S., Stroop, M., and Ryan, J.. “Cost of Assembling, Storing, and Processing Seed Cotton in Lea County as Affected by Altering the Number of Operating Gins.” New Mex. Agr. Exp. Sta., Research Report 247, 1973.Google Scholar
Hallberg, M. C. “Projecting the Size Distribution of Agriculture Firms - An Application of a Markov Process with Non-Stationary Transition Probabilities.” Amer. J. Agr. Econ., 51(1969):289–302.CrossRefGoogle Scholar
Hudson, J. F. and Jesse, R. H.. “Optimum Number, Size, and Location of Processing Facilities for More Efficient Marketing of Louisiana Cotton.” Louisiana State University, Research Report No. 438, 1972.Google Scholar
Judge, G. C. and Swanson, E. R.. “Markov Chains: Basic Concepts and Suggested Uses in Agricultural Economics.” Dept. Agr. Econ., University of Illinois, AERR 49, 1961.Google Scholar
Myers, David Walling. “Analysis of the Texas High Plains Cotton Ginning Industry Structure: A Markov Chain Procedure.” Unpublished M.S. Thesis, Texas Tech University, December 1982.Google Scholar
Padberg, D. I. “The Use of Markov Process in Measuring Changes in Market Structure.” J. Farm Econ., 44(1962):189–199.CrossRefGoogle Scholar
Power, A. P. and Harris, S. A.. “An Application of Markov Chains to Farm-Type Structural Data in England and Wales.” Amer. J. Agr. Econ., 22(1971):162–177.Google Scholar
Shaw, D. L., Cleveland, O. A. Jr. and Ghetti, J. L.. “Economic Models for Cotton Ginning.” Commodity Econ. Div., ERS, USDA, and College of Agr. Sci., Texas Tech University, College of Agr. Sci. Pub. No. T-1-158, August 1977.Google Scholar
Smith, B. and Dardis, R.. “Inter-Fiber Competition and the Future of the United States Cotton Industry.” Amer. J. Agr. Econ., 23(1972):209–216.CrossRefGoogle Scholar
Southwestern Public Service Company. “Summary of Southern Division All Electric Gin Report, 1982.” Lubbock, Texas.Google Scholar
Stanton, B. F. and Kettunen, L.. “Potential Entrants and Projections in Markov Process Analysis.” J. Farm Econ., 49(1967):633–642.CrossRefGoogle Scholar
Stavins, R. N. and Stanton, B. F.. “Using Markov Models to Predict the Size Distribution of Dairy Farms, New York State, 1968-1985.” Cornell University Exp. Sta., Dept. Agr. Econ., A. E. Res. 80-20, 1980.Google Scholar
U.S. Department of Agriculture. “Changes for Ginning Cotton, Cost of Selected Information.” ERS and AMS, annual reports.Google Scholar
U.S. Department of Agriculture. “Statistics on Cotton and Related Data, 1920-73.” ERS, Stat. Bulletin No. 535, October 1974, and succeeding supplements.Google Scholar
U.S. Department of Commerce. “Cotton Ginnings in the United States.” Bureau of the Census, annual issues.Google Scholar
U.S. Department of Commerce. Statistical Abstract of the United States, 1980, Bureau of the Census.Google Scholar