This project uses internal Census Bureau microdata, as well as inspection data from the Mine Safety and Health Administration (MSHA), to study the effects of product differentiation and regulatory compliance on the vertical integration of select production processes within a company. In particular, this research focuses on the vertical integration of mining, pulp production, foundries, die casting, etc. across NAICS industries 311, 321, 322, 323, 327, 331, 332, and 334.
The project analyzes the impact of transaction costs on firms’ decisions to integrate vertically integrate. This research develops methods for accurately aggregating vertical integration data to the firm level, as well as develops methods for handling data with missing values and measurement error.