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Economies of Size and Scope in Rural Low-Volume Roads

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  • Deller, Steven C
  • Chicoine, David L
  • Walzer, Norman

Abstract

Evidence on cost savings from reorganizing township low-volume, rural-road systems into larger units is presented in the study of technical efficiencies in producing local government services. Data are from a sample of midwestern townships. Heterogeneity of surface types is accounted for by specifying a multiple output translog cost function. Examination of economies of size suggest that cost savings could be realized by reorganizing townships into larger units. The presence of economies of scope suggest that jurisdictions should not specialize in maintenance responsibilities due to the joint use of inputs. Copyright 1988 by MIT Press.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 70 (1988)
Issue (Month): 3 (August)
Pages: 459-65

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Handle: RePEc:tpr:restat:v:70:y:1988:i:3:p:459-65

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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Cited by:
  1. 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.
  2. Scorsone, Eric, 2007. "School District and Municipal Reorganization: Research Findings & Policy Proposals," Staff Papers 6543, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  3. 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.
  4. Mekhora, Thamrong & Fleming, Euan M., 2004. "An Analysis of Scope Economies and Specialisation Efficiencies Among Thai Shrimp and Rice Smallholders," Working Papers 12914, University of New England, School of Economics.
  5. 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.
  6. Villano, Renato A. & Fleming, Pauline & Fleming, Euan M., 2008. "Evidence of Scope Economies in Australian Agriculture," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 5996, Australian Agricultural and Resource Economics Society.
  7. 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.
  8. Wong, Ho Lun & Luo, Renfu & Zhang, Linxiu & Rozelle, Scott, 2013. "Providing quality infrastructure in rural villages: The case of rural roads in China," Journal of Development Economics, Elsevier, vol. 103(C), pages 262-274.
  9. Fleming, Pauline & Fleming, Euan M. & Griffith, Garry R. & Johnston, David, 2004. "Estimation of a Multi-Input Multi-Output Model of Lot-Fed Beef Cattle in Australia," Working Papers 12944, University of New England, School of Economics.
  10. Renner, Swetlana & Glauben, Thomas & Hockmann, Heinrich, 2012. "Measurement And Decomposition Of Flexibility Of Multi-Output Firms," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 124865, International Association of Agricultural Economists.
  11. Krause, Mark A., 1996. "Cost Savings From Consolidating North Dakota'S Counties," Agricultural Economics Reports 23321, North Dakota State University, Department of Agribusiness and Applied Economics.
  12. Deller, Steven C. & Walzer, Norman, 1995. "Structural Shifts In The Treatment Of Intergovernmental Aid: The Case Of Rural Roads," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(02), December.

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