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Estimating internal transaction costs: the case of corporate dairy farms in Russia’s Moscow oblast

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Author Info

  • Svetlov, Nikolai M.

Abstract

The paper develops a methodological framework for estimating internal transaction costs from observed input-output mixes and prices. The empirical model is a modified DEA. This framework is applied to corporate dairy farms located in Russia’s Moscow oblast. The estimates provided that internal transaction costs significantly distort the allocation of marketable output and in addition hamper the evolution of more efficient farm structures. Cutting the internal transaction costs should be a priority of regional and federal agricultural development. Dieser Beitrag entwickelt eine Methode für die Schätzung der internen Transaktionskosten mit Hilfe von beobachteten Outputmengen und -preisen. Das empirische Modell ist ein modifiziertes DEA Programm. Berechnungen wurden für große Milchviehbetriebe im Oblast Moskau durchgeführt. Die Schätzungen ergaben, dass die internen Transaktionskosten extrem hoch sind und nicht nur zu signifikanten allokativen Verzerrungen führen, sondern darüber hinaus den strukturellen Wandel behindern. Die Verringerung der internen Transaktionskosten sollte von daher eine hohe Priorität in der regionalen und föderalen Agrarpolitik haben.

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File URL: http://purl.umn.edu/134887
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Bibliographic Info

Article provided by Humboldt-Universitaet zu Berlin, Department for Agricultural Economics in its journal German Journal of Agricultural Economics.

Volume (Year): 58 (2009)
Issue (Month): 8 ()
Pages:

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Handle: RePEc:ags:gjagec:134887

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Related research

Keywords: transaction costs; output allocation; milk; corporate farms; Russia; Transaktionskosten; Outputallokation; Milch; große bis mittelgroße Betriebe; Russland; Institutional and Behavioral Economics; Livestock Production/Industries; Productivity Analysis;

References

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  1. Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75, pages 123.
  2. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, vol. 26(2), pages 95-114, November.
  3. Vasilii Uzun, 2005. "Large and Small Business in Russian Agriculture: Adaptation to Market," Comparative Economic Studies, Palgrave Macmillan, vol. 47(1), pages 85-100, March.
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Cited by:
  1. Svetlov, Nikolay M. & Kazakevich, Iryna A., 2010. "A microeconomic model for subsidies allocation: The case of Belarus," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52701, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO).

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