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Allocable fixed inputs as a cause of joint production: an empirical investigation

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  • Howard D. Leathers

Abstract

Leathers (1991) shows that while the existence of allocable fixed inputs can cause joint production (as in Shumway, Pope and Nash, 1984), it will not necessarily lead to joint production. The extent to which allocable fixed inputs cause joint production in agriculture is an empirical question. This paper offers an empirical answer. By estimating a short‐run joint cost function, it is possible to identify levels of outputs for which joint production may be optimal in the short run but not in the long run. Only in these output regions will there be jointness caused by allocable fixed inputs. For the data in this paper (160 Wisconsin farms), these output regions are very small; thus allocable fixed inputs do not appear to be an important cause of jointness for these farms. Technical causes of jointness appear to be a significant cause of joint production.

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  • Howard D. Leathers, 1992. "Allocable fixed inputs as a cause of joint production: an empirical investigation," Agricultural Economics, International Association of Agricultural Economists, vol. 7(2), pages 109-124, July.
    • Handle: RePEc:bla:agecon:v:7:y:1992:i:2:p:109-124
    DOI: 10.1111/j.1574-0862.1992.tb00208.x
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    Cited by:

    1. Alem, Habtamu1 & Lien, Gudbrand1 & Kumbhakar, Subal C1 & Hardaker, J. Brian, 2017. "Economies Of Scale And Scope In The Norwegian Agriculture," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260907, European Association of Agricultural Economists.
    2. Mafoua, Edouard, 2002. "Economies Of Scope And Scale Of Multi-Product U.S. Cash Grain Farms: A Flexible Fixed-Cost Quadratic (Ffcq) Model Analysis," 2002 Annual meeting, July 28-31, Long Beach, CA 19734, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Mafoua, Edouard & Hossain, Ferdaus, 2001. "Scope And Scale Economies For Multi-Product Farms: Firm-Level Panel Data Analysis," 2001 Annual meeting, August 5-8, Chicago, IL 20627, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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