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《Journal of Industrial Economics》 2003-01
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Market Power and Allocative Efficiency Loss in Chinese Tobacco Industry

Hao Dongmei Wang Xiuqing  
This article analyzes the market power and allocative efficiency loss in Chinese tobacco industry.Based on the 1985~1999 aggregate level time series data,the NEIO model and AEL model had been estimated.Empirical results show that the Lerner Index of the Chi- nese tobacco industry is about 0.98.Due to the strong market power,the allocative efficiency loss reached more than 20 % of the social welfare.
【CateGory Index】: F426.8;F224
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【Secondary References】
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