Scale economies and inefficiency of US dairy farms

Mosheim, Roberto and Lovell, C.A. Knox (2009) Scale economies and inefficiency of US dairy farms. American Journal of Agricultural Economics, 91 3: 777-794. doi:10.1111/j.1467-8276.2009.01269.x

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Author Mosheim, Roberto
Lovell, C.A. Knox
Title Scale economies and inefficiency of US dairy farms
Journal name American Journal of Agricultural Economics   Check publisher's open access policy
ISSN 0002-9092
Publication date 2009-08-01
Year available 2009
Sub-type Article (original research)
DOI 10.1111/j.1467-8276.2009.01269.x
Open Access Status
Volume 91
Issue 3
Start page 777
End page 794
Total pages 17
Editor Dorfman, Jeffrey H.
Lichtenberg, Erik
Preckel, Paul V.
Thurman, Walter N.
Place of publication United States
Publisher Oxford University Press
Language eng
Subject C1
140302 Econometric and Statistical Methods
140201 Agricultural Economics
Abstract This study employs data drawn from the 2000 Agricultural Resource Management Survey, a U.S. Department of Agriculture-sponsored farmers' survey. The article estimates returns to scale relationships across dairy farms of different sizes and across different regions, incorporating variables hypothesized to influence farm performance. Results point to significant scale economies in U.S. dairy farms and underscore the importance of taking account of inefficiency when estimating scale economies. Contrary to previous research, the preferred cost function specification does not show a region of decreasing returns to scale. This finding helps explain why the average size of dairy farms has been increasing.
Keyword Dairy Farms
Scale economies
Shadow cost function
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: 2010 Higher Education Research Data Collection
School of Economics Publications
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Citation counts: TR Web of Science Citation Count  Cited 31 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 38 times in Scopus Article | Citations
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Created: Thu, 03 Sep 2009, 18:03:32 EST by Mr Andrew Martlew on behalf of School of Economics