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Technological Change and Economies of Scale in Danish Agriculture

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  • Rasmussen, Svend

Abstract

This paper presents the results of an empirical analysis of technological change and economies of scale in Danish agriculture. The estimation is based on a multi-output, multi-input translog cost function and covers the period 1973-1995. The results show that technological change varied considerably. The average rate of technological change was highest on arable farms (4.0% per year) and lowest on dairy farms (1.0% per year), with pig farms in between (2.2% per year). Alt three farm types showed an increasing trend in technological change over time, and technological changes were typically biased. The elasticity of size was considerably above 1 for both small and large arable farms and dairy farms indicating a considerable economic incentive to increase the farm size. For pig farms only the small farms showed a clear incentive to increase the farm size. The results support the hypothesis that policy measures have had a significant influence on the differences in development within the three farm types analysed.

Suggested Citation

  • Rasmussen, Svend, 2000. "Technological Change and Economies of Scale in Danish Agriculture," Unit of Economics Working Papers 24185, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
    • Handle: RePEc:ags:rvaewp:24185
    DOI: 10.22004/ag.econ.24185
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    References listed on IDEAS

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    4. Hanoch, Giora, 1975. "The Elasticity of Scale and the Shape of Average Costs," American Economic Review, American Economic Association, vol. 65(3), pages 492-497, June.
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    6. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
    7. Kuroda, Yoshima, 1988. "Biased technological change and factor demand in postwar Japanese agriculture, 1958-84," Agricultural Economics, Blackwell, vol. 2(2), pages 101-122, October.
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    Cited by:

    1. Darragh Clancy & A. Kazukauskas & C. Newman & Fiona Thorne, 2009. "An investigation of the level of structural change in the agrifood sector of Ireland, Denmark and the Netherlands," Working Papers 0915, Rural Economy and Development Programme,Teagasc.

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