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Economies of Scale and Farm Size in the Antebellum Sugar Sector

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  • Schmitz, Mark D.

Abstract

This article explains the emergence of a plantation economy in the antebellum sugar sector. The hypothesis of increasing returns to scale was tested using a Zellner-Revankar generalized production function model. Economies of scale were found using samples from the manuscript censuses, but these scale economies diminished with size. A second important factor in explaining the size distribution of farms was the dual technology in the manufacturing stage of sugar production. Farms with inferior horse-power mills had poorer survival records and less flexibility in expansion than those using steam power mills.

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  • Schmitz, Mark D., 1977. "Economies of Scale and Farm Size in the Antebellum Sugar Sector," The Journal of Economic History, Cambridge University Press, vol. 37(4), pages 959-980, December.
    • Handle: RePEc:cup:jechis:v:37:y:1977:i:04:p:959-980_09
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    Cited by:

    1. Evan Wigton-Jones, 2020. "Legacies of inequality: the case of Brazil," Journal of Economic Growth, Springer, vol. 25(4), pages 455-501, December.
    2. Cook, Lisa D., 2011. "Inventing social capital: Evidence from African American inventors, 1843–1930," Explorations in Economic History, Elsevier, vol. 48(4), pages 507-518.
    3. Christopher David Absell, 2020. "The rise of coffee in the Brazilian south‐east: tariffs and foreign market potential, 1827–40," Economic History Review, Economic History Society, vol. 73(4), pages 964-990, November.

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