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Does Contracting Raise Farm Productivity? The Impact Of Production Contracts On Hog Farm Performance

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Author Info
Key, Nigel
McBride, William

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Abstract

The costs and benefits of policies designed to regulate the use of production contracts will depend in part on the impact of these contracts on farm productivity. In this paper we measure the impact of contracting on 1) partial and total factor productivity and 2) the production technology for 479 US hog operations. A sample selection model accounts for the fact that unobservable variables may be correlated with both the decision to contract and farm productivity. Results also identify determinants of farmers' decisions to contract and factors influencing farm productivity.

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File URL: http://purl.umn.edu/20721
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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20721.

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Date of creation: 2001
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Handle: RePEc:ags:aaea01:20721

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Related research
Keywords: Livestock Production/Industries; Productivity Analysis;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Hennessy, David A., 2002. "Information Asymmetry as a Reason for Food Industry Vertical Integration," Staff General Research Papers 5032, Iowa State University, Department of Economics.
  2. Johnson, C. Scott & Foster, Kenneth A., 1994. "Risk Preferences And Contracting In The U.S. Hog Industry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(02), December. [Downloadable!]
  3. Gillespie, Jeffrey M. & Eidman, Vernon R., 1998. "The Effect Of Risk And Autonomy On Independent Hog Producers' Contracting Decisions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(01), July. [Downloadable!]
  4. Shelanski, Howard A & Klein, Peter G, 1995. "Empirical Research in Transaction Cost Economics: A Review and Assessment," Journal of Law, Economics and Organization, Oxford University Press, vol. 11(2), pages 335-61, October.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kaplan, Jonathan, 2001. "Prevention Versus Utilization Of Excess Nutrients From Animal Feeding Operations:The Case Of Managing Nutrient Uncertainty," 2001 Annual meeting, August 5-8, Chicago, IL 20533, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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