Does Market Concentration Promote or Reduce New Product Introductions? Evidence from US Food Industry

Table 4a. Results from First-Stage Regressions

----------------------------------

Endogenous Explanatory Variable -

(1)

------------------

(2)

CI4

----------------------------------

coeff of [CAPASI*USMERGERS]

-0.0000489

(0.000)

----------_0.-₀-₀-₀--₀₅-₃-₂--

(0.000)

----------------------------------

F stats for Instrument

21.78
(0.0000)

------------------

21.87
(0.0000)

Partial R-sq for Instrument
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

0.1080

0.1083
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Table 4b. Wooldridge test for autocorrelation in panel data

Model with

Test Stat

HI
40.874
(0.0002)

CI4
39.790
(0.0002)

Table 4c. New Product Introductions (NPI) Regressions

Concentration is exogenous \|			Concentration is endogenous
	(1) GLS	(2) \| GMM \|	(3) GLS	(4) GMM
--------- HI	407.8791**		7,155.6489**	-----------------
	(0.041)		(0.017)
CI4		443.4380**		6,530.2582**
		(0.022)		(0.016)
SALES	0.0052***	0.0053***	0.0055	0.0058
	(0.002)	(0.001)	(0.128)	(0.106)
SGR	0.5845	0.5887	-0.6607	-0.7189
	(0.198)	(0.195)	(0.742)	(0.719)
N	10.0211***	10.1839***	19.5874	17.9264
	(0.006)	(0.005)	(0.125)	(0.140)
RNDI	26,594***	26,208***	116,435***	114,322***
	(0.000)	(0.000)	(0.000)	(0.000)
FEXP	-52.6849	-54.3954	247.5589	240.1791
	(0.521)	(0.504)	(0.272)	(0.278)
FAFH	20.8455	20.5176	81.7665	80.4992
	(0.462)	(0.465)	(0.382)	(0.380)
CAPI	-498	-501	-5,662	-5,190
	(0.484)	(0.486)	(0.307)	(0.333)
Constant	0.7234		44.1283
	(1.000)		(0.981)
--------- Number of _ _ _ _ _ _ _ _ _ _	Observations	= 198; Number	of NPI categories	----------------- = 9 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

p values in parentheses; * significant at 10%; ** significant at 5%;

*** significant at 1%; GLS and GMM estimates obtained using xtgls and
xtivreg2 in Stata, account for first order serial correlation.