Panzar, J.C. and Rosse, J.N. (1987) Testing for “Monopoly” Equilibrium. Journal of Industrial Economics, 35, 443-456.
https://doi.org/10.2307/2098582

has been cited by the following article:

• TITLE: The Panzar-Rosse Statistic Revisited

  AUTHORS: Hiroshi Gunji, Yuan Yuan

  KEYWORDS: Panzar-Rosse Statistic, Monopolistic Competition, Increasing Returns to Scale

  JOURNAL NAME: Theoretical Economics Letters, Vol.7 No.1, December 31, 2016

  ABSTRACT: In this note, we prove that even if the technology of firms exhibits increasing returns to scale, the Panzar-Rosse statistic in a monopolistic competitive market is still available and has a negative value. Further, we show that the statistic would be greater than unity if firms with increasing-returns-to-scale technology were to choose a saddle point under certain conditions. This implies that the value of greater than unity is not actually observed.