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Scope And Scale Economies For Multi-Product Farms: Firm-Level Panel Data Analysis

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  • Mafoua, Edouard
  • Hossain, Ferdaus

Abstract

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.

Suggested Citation

  • 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).
    • Handle: RePEc:ags:aaea01:20627
    DOI: 10.22004/ag.econ.20627
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    1. Pokharel, Krishna P & Featherstone, Allen M, 2016. "A Nonparametric Approach to Estimate Multiproduct and Product-specific Scale and Scope Economies for Agricultural Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236182, Agricultural and Applied Economics Association.
    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. Parman, Bryon & Featherstone, Allen & Amanor-Boadu, Vincent, 2014. "A Nonparametric Approach to Multi-product and Product-specific Scale Economies, Economies of Scope, and Cost Efficiency for Kansas Farms," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 161626, Southern Agricultural Economics Association.

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