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A Nonparametric Approach to Estimate Multiproduct and Product-specific Scale and Scope Economies for Agricultural Cooperatives

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  • Pokharel, Krishna P
  • Featherstone, Allen M

Abstract

The purpose of this research is to estimate product-specific and multiproduct economies of scale and economies of scope using a nonparametric data envelopment analysis (DEA) approach. Product-specific economies of scale exist for other product sales, but not for grain and farm inputs sales. Overall, multiproduct economies of scale and economies of scope exist. However, the median value of multiproduct scale economies are higher and greater than one for small cooperatives, which imply that cooperatives mergers likely to continue to exhaust the benefits from economies of scale.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:aaea16:236182
    DOI: 10.22004/ag.econ.236182
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    1. Pokharel, Krishna & Featherstone, Allen, 2016. "Examining the Productivity Growth of Agricultural Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236273, Agricultural and Applied Economics Association.

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