Risk, Technical Efficiency And Market Transaction Costs In Different Organisational Forms: Evidence From The Oblast Tatarstan
AbstractThe paper investigates the significance of external and internal transaction costs and risk in agriculture in the Tatarstan Republic. The analysis is conducted for independent farms and farms which are members of agroholdings. The result indicates that external transaction costs are more marked in independent farms than in agroholding members. However, average prices do not differ among the organisational forms. With regard to internal transaction costs (or inefficiency) the result is the opposite. Inefficiency in agroholding members is considerably higher than in independent farms. However, the estimation suggests that this result is due to more intense risk management in agroholding members. Thus, members of a business group have a more intense use of inputs; however, these are rather allocated to reduce uncertainty of production than to increase production.
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Bibliographic InfoPaper provided by German Association of Agricultural Economists (GEWISOLA) in its series 51st Annual Conference, Halle, Germany, September 28-30, 2011 with number 114510.
Date of creation: 2011
Date of revision:
Risk production function; internal and external transaction costs; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Industrial Organization; Institutional and Behavioral Economics; Q110; D220; P230;
Find related papers by JEL classification:
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
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