Advanced Search
MyIDEAS: Login to save this paper or follow this series

Returns to Scale in Agriculture: A Suggested Theoretical Framework

Contents:

Author Info

  • Arianto Patunru

    ()
    (LPEM, Faculty of Economics, University of Indonesia)

Abstract

Standard economic theory suggests that increasing returns come from indivisible f ixed assets. However, many analysts argue that the long run size distribution of machinery, land, structures, irrigation,herds, and flock are continuous. Our objective here is to provide a framework to claim that there are significant returns to scale in agriculture despite the contradictions in past s tudies. We cons ider the impor tance of management ability in production process (Mefford, 1986). The short-run rigidi ties or lumpiness2 of management ability, we believe, would result in scale economies. Therefore, larger farms with higher ability to utilize more will exhibit lower unit costs. We start with behavioral explanation for returns to scale based on the lumpiness of management ability. Next, we develop an econometric model that will allow us to test the behavioral explanation.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.lpem.org/repec/lpe/papers/200704.pdf
File Function: First version, 2007
Download Restriction: no

Bibliographic Info

Paper provided by LPEM, Faculty of Economics, University of Indonesia in its series LPEM Staff Papers with number 200704.

as in new window
Length:
Date of creation: Apr 2007
Date of revision: Apr 2007
Handle: RePEc:lpe:wpaper:200704

Contact details of provider:
Phone: (021)-7272425
Web page: http://www.lpem.org
More information through EDIRC

Related research

Keywords: Returns to Scale;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:lpe:wpaper:200704. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Arianto Patunru).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.