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Social And Scale Efficiency Gains Due To Vertical Integration In The U.S. Hog Sector

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Author Info
Helmers, Glenn A.
Shaik, Saleem
Atwood, Joseph

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Abstract

Using a non-parametric linear programming approach, our contribution is (1) to examine if efficiency gains in hog production are realized due to vertical integration and (2) to demonstrate the efficiency gains that are realized are a product of economies of scope and scale. The model uses U.S. hog sector data for the period, 1982-1997. Results indicate efficiency gains are relized due to vertical integration and can be explained by scope and scale efficiency gains. The t-test at the 5% level of significance indicates the mean overall efficiency gains; scope efficiency gains and scale efficiency gains are significantly different from one.

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Publisher Info
Paper provided by Southern Agricultural Economics Association in its series 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama with number 35143.

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Date of creation: 2003
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Handle: RePEc:ags:saeatm:35143

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Keywords: Nonparametric linear programming approach; Vertical integration; Scale; Scope; Efficiency gains; U.S. Hog sector; Industrial Organization; O3; C6; Q1;

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  1. Christensen, Laurits R & Greene, William H, 1976. "Economies of Scale in U.S. Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 655-76, August. [Downloadable!] (restricted)
  2. Lawrence, Colin, 1989. "Banking Costs, Generalized Functional Forms, and Estimation of Economies of Scale and Scope," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 21(3), pages 368-79, August. [Downloadable!] (restricted)
  3. Kislev, Yoav & Peterson, Willis, 1982. "Prices, Technology, and Farm Size," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 578-95, June. [Downloadable!] (restricted)
  4. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November. [Downloadable!] (restricted)
  5. Eaton, B Curtis & Lemche, S Q, 1991. "The Geometry of Supply, Demand, and Competitive Market Structure with Economies of Scope," American Economic Review, American Economic Association, vol. 81(4), pages 901-11, September. [Downloadable!] (restricted)
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