Abstract

This paper poses the question of whether it is possible to identify whether imports can exert an identifiable constraint on the pricing behavior of domestic producers of a good. A methodology is proposed and implemented for doing precisely this. In particular a model of the cement market in the United States is estimated and the impact of price on market behavior explored. The conclusion suggests that, at least for cement, imports have the predicted relationships. Finally, the question of whether the market model constructed is stable in the statistical sense is addressed. Only the export relationship is problematic.

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