SCOPE AND SCALE ECONOMIES FOR MULTI-PRODUCT FARMS: FIRM-LEVEL PANEL DATA ANALYSIS

This study used the flexible fixed cost quadratic function to analyze the cost structure of multi-product farms using farm-level panel data. The robustness of estimated parameters are examined using four panel data estimators. Results suggest that scale economies remain significant in Illinois farming. An increase in soybean acreage reduces the marginal cost of producing corn. Firm-specific effects, that indicate the levels of fixed costs, are found to be positive and significant.


Subject(s):
Issue Date:
2001
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20627
Total Pages:
27
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-04-26

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