Economies of Scale in the Floriculture Industry
AbstractThis study investigated the cost structure of the floriculture industry in the United States. Economies of scale and input elasticities were estimated with a normalized quadratic cost function. Results suggest that economies of scale exist in the floriculture industry. As producers become large and more automated, they have a cost advantage relative to smaller producers who are producing the same output product mix. The existence of economies of scale suggests that average grower size can increase in the future as growers increase in size to take advantage of cost efficiencies.
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Bibliographic InfoArticle provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.
Volume (Year): 35 (2003)
Issue (Month): 03 (December)
duality; economies of scale; floriculture; nonprice variables; Q12; C31; D20;
Find related papers by JEL classification:
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- D20 - Microeconomics - - Production and Organizations - - - General
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- Henry Vega, 2008. "The Transportation Costs of Fresh Flowers: A Comparison between Ecuador and Major Exporting Countries," IDB Publications 9293, Inter-American Development Bank.
- Deininger, Klaus W. & Jin, Songqing, 2005.
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- Deininger, Klaus & Songqing Jin, 2003. "Land sales and rental markets in transition - evidence from rural Viet Nam," Policy Research Working Paper Series 3013, The World Bank.
- Henry Vega, 2008. "Transportation Costs of Fresh Flowers: A Comparison across Major Exporting Countries," IDB Publications 48178, Inter-American Development Bank.
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