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Dynamic Measures Of Scope And Scale Economies And The Dynamic Theory Of The Firm

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  • Fernandez-Cornejo, J.
  • Gempesaw, C. M., II
  • Elterich, J. G.
  • Stefanou, S. E.

Abstract

Static concepts of multiproduct economies of scale and scope are extended into a dynamic setting within the cost of adjustment framework. Their most important properties are developed and the foundations for a dynamic theory of the firm that generalizes the neoclassical theory of the firm are presented. The dynamic measures of scope and scale as well as shadow costs are empirically estimated for multiple-output, multiple-input German "dairy" (arms operating under a production quota. Possible causes of economies of scope are explored and a conceptual model to predict the evolution of the production structure of German farms is formulated.

Suggested Citation

  • Fernandez-Cornejo, J. & Gempesaw, C. M., II & Elterich, J. G. & Stefanou, S. E., 1990. "Dynamic Measures Of Scope And Scale Economies And The Dynamic Theory Of The Firm," 1990 Annual meeting, August 5-8, Vancouver, Canada 270865, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea90:270865
    DOI: 10.22004/ag.econ.270865
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    References listed on IDEAS

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