Agglomeration Effects in Ontario's Dairy Farming

This paper examines the agllomeration hypothesis: i.e., firm productive efficiency is increased by closer proximity to other firms. Using a stochastic input distant function with heteroskedastic inefficiency effects, we find that the density of Ontario dairy farms has a significant positive economic effect on production efficiency. The finding has implications for understanding agricultural firm location and farmer led efforts to preserve agricultural farming activities in some regions.


Issue Date:
2015
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/211700
Total Pages:
33
JEL Codes:
C5; D1; Q12




 Record created 2017-04-01, last modified 2017-08-28

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