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Measuring Scope And Scale Efficiency Gains Due To Specialization

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  • Helmers, Glenn A.
  • Langemeier, Michael R.
  • Shaik, Saleem

Abstract

Using the non-parametric linear programming approach, this study examines overall efficiency gains due to diversification between crop and livestock enterprises for a sample of Kansas farms. Overall efficiency gains were decomposed into scope efficiency gains and scale efficiency gains. Farms with both crops and livestock were found to be less efficient than farms with just crops or just livestock. Operator age, profit margin, and farm size were significantly related to overall efficiency.

Suggested Citation

  • Helmers, Glenn A. & Langemeier, Michael R. & Shaik, Saleem, 2005. "Measuring Scope And Scale Efficiency Gains Due To Specialization," 2005 Annual meeting, July 24-27, Providence, RI 19388, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19388
    DOI: 10.22004/ag.econ.19388
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    References listed on IDEAS

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