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Evidence of Scope Economies in the Australian Wheat-Sheep Zone

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  • Fleming, Euan M.
  • Villano, Renato A.
  • Fleming, Pauline

Abstract

Scope economies can be used in studies of farming systems to provide a measure of synergies between different farm enterprises and between activities within farm enterprises. In this paper, they are reported for farms in a benchmarking group in the Wheat-Sheep Zone in New South Wales, Australia, by estimating a stochastic input distance function and calculating an ‘economies of scope parameter’. Evidence is presented of scope economies between sheep and beef enterprises, sheep and crop enterprises, and beef and crop enterprises.

Suggested Citation

  • Fleming, Euan M. & Villano, Renato A. & Fleming, Pauline, 2008. "Evidence of Scope Economies in the Australian Wheat-Sheep Zone," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36849, Agricultural Economics Society.
    • Handle: RePEc:ags:aes008:36849
    DOI: 10.22004/ag.econ.36849
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    References listed on IDEAS

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    1. Grosskopf, Shawna & Hayes, Kathy & Yaisawarng, Suthathip, 1992. "Measuring Economies of Diversification: A Frontier Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(4), pages 453-459, October.
    2. Coelli, Tim & Fleming, Euan, 2004. "Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea," Agricultural Economics, Blackwell, vol. 31(2-3), pages 229-239, December.
    3. Jean-Paul Chavas & Kwansoo Kim, 2007. "Measurement and Sources of Economies of Scope: A Primal Approach," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(3), pages 411-427, September.
    4. Deller, Steven C & Chicoine, David L & Walzer, Norman, 1988. "Economies of Size and Scope in Rural Low-Volume Roads," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 459-465, August.
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    Cited by:

    1. Villani, Salvatore, 2010. "Per un giusto equilibrio tra efficacia ed efficienza nell’attuazione della legge delega sul federalismo fiscale: verso la definizione dei LEP e dei costi standard delle Regioni," MPRA Paper 29513, University Library of Munich, Germany.
    2. Villani, Salvatore, 2010. "Elementi ai fini della definizione della nozione di costo standard: una rassegna della letteratura e delle principali esperienze estere [Basic elements defining the standard cost concept. A survey ," MPRA Paper 29683, University Library of Munich, Germany.

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