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A dynamic analysis of the size distribution of firms: The case of the US dairy industry

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Author Info

  • Jean-Paul Chavas

    (Agricultural Economics Department, University of Wisconsin-Madison)

  • Gilbert Magand

    (Agricultural Economics Department, University of Wisconsin-Madison)

Abstract

This article develops a time-varying Markov process of the aggregate size distribution of firms in an industry. This is used to specify and estimate an econometric model of the regional evolution of the number and size of US dairy farms. The empirical results provide evidence concerning the effects of milk price and feed cost on the structure of dairy production in selected regions.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 4 (1988)
Issue (Month): 4 ()
Pages: 315-329

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Handle: RePEc:wly:agribz:v:4:y:1988:i:4:p:315-329

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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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  1. Edwards, Clark & Smith, Matthew G. & Peterson, R. Neal, 1985. "The Changing Distribution of Farms by Size: A Markov Analysis," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 4.
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Cited by:
  1. Kimhi, Ayal & Tzur, Nitzan, 2011. "Long-Run Trends in the Farm Size Distribution in Israel: The Role of Part-Time Farming," Discussion Papers 99217, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.

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