An 'Ideal' Decomposition of Industry Dynamics: An Application to the Nationwide and State Level U.S. Banking Industry

This paper considers the aggregate performance of the banking industry, applying a modified and extended dynamic decomposition of bank return on equity. The aggregate performance of any industry depends on the underlying microeconomic dynamics within that industry . adjustments within banks, reallocations between banks, entry of new banks, and exit of existing banks. Bailey, Hulten, and Campbell (1992) and Haltiwanger (1997) develop dynamic decompositions of industry performance. We extend those analyses to derive an ideal decomposition that includes their decomposition as one component. We also extend the decomposition, consider geography, and implement decomposition on a state-by-state basis, linking that geographic decomposition back to the national level. We then consider how deregulation of geographic restrictions on bank activity affects the components of the state-level dynamic decomposition, controlling for competition and the state of the economy within each state and employing fixed- and random-effects estimation for a panel database across the fifty states and the District of Columbia from 1976 to 2000.

Decomposition Rates and Nitrogen Release of Turf Grass Clippings

Decomposition rates and N release patterns of turfgrass clippings from lawns are not well understood. Litter bags containing clippings were inserted into the thatch layer of a coolseason turf. The experiment was arranged as a 2 × 4 factorial in a randomized complete block design with three replicates. Treatments included four rates of N fertilizer (0, 98, 196, and 392 kg N ha-1 yr-1) and two clipping treatments (returned vs. removed). Litter bags were removed periodically over the growing season and samples were analyzed for biomass, N and C concentrations, and C:N ratio on an ash-free basis. Percentage N loss from the clippings after 16 weeks ranged from 88% to 93% at the 0 and 392 kg N ha-1 rates, respectively, and from 86% to 94% when clippings were removed (CRM) or returned (CRT), respectively. Percentage C loss from the clippings ranged from 94% to 95% at the 0 and 392 kg N ha-1 rates, respectively, and from 92% to 96% with CRM and CRT, respectively. Cumulative N release was similar across N fertilization rates, (ranging from 131 g N kg-1 to 135 g N kg-1 tissue) but was higher for CRT (151 g N kg-1 tissue) than for CRM (128 g N kg-1 tissue). Grass clippings decomposed rapidly and released N quickly when returned to the turf thatch layer. This indicates the potential for reduced N fertilization when clippings are returned. Such rapid decomposition also suggests that the contribution of grass clippings to thatch development is negligible.