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Estimating internal transaction costs: the case of corporate dairy farms in Russia’s Moscow oblast


  • Svetlov, Nikolai M.


The paper develops a methodological framework for estimating internal transaction costs from observed input-output mixes and prices. The empirical model is a modified DEA. This framework is applied to corporate dairy farms located in Russia’s Moscow oblast. The estimates provided that internal transaction costs significantly distort the allocation of marketable output and in addition hamper the evolution of more efficient farm structures. Cutting the internal transaction costs should be a priority of regional and federal agricultural development. Dieser Beitrag entwickelt eine Methode für die Schätzung der internen Transaktionskosten mit Hilfe von beobachteten Outputmengen und -preisen. Das empirische Modell ist ein modifiziertes DEA Programm. Berechnungen wurden für große Milchviehbetriebe im Oblast Moskau durchgeführt. Die Schätzungen ergaben, dass die internen Transaktionskosten extrem hoch sind und nicht nur zu signifikanten allokativen Verzerrungen führen, sondern darüber hinaus den strukturellen Wandel behindern. Die Verringerung der internen Transaktionskosten sollte von daher eine hohe Priorität in der regionalen und föderalen Agrarpolitik haben.

Suggested Citation

  • Svetlov, Nikolai M., 2009. "Estimating internal transaction costs: the case of corporate dairy farms in Russia’s Moscow oblast," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(08), pages 1-8, November.
  • Handle: RePEc:ags:gjagec:134887
    DOI: 10.22004/ag.econ.134887

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    References listed on IDEAS

    1. Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75, pages 123-123.
    2. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, vol. 26(2), pages 95-114, November.
    3. Vasilii Uzun, 2005. "Large and Small Business in Russian Agriculture: Adaptation to Market," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 47(1), pages 85-100, March.
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    Cited by:

    1. repec:zbw:iamost:207071 is not listed on IDEAS
    2. Kimhi, Ayai & Lerman, Zvi (ed.), 2015. "Agricultural transition in post-soviet Europe and Central Asia after 25 years: International workshop in honor of Professor Zvi Lerman," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 79, number 79.
    3. Gataulina, Ekaterina & Hockmann, Heinrich & Strokov, Anton, 2014. "Production Risk, Technology and Market Access in Different Organisational Forms: Evidence from Tatarstan and Oryol," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(4), pages 1-26, November.
    4. Duniya, K.P. & Haruna, O.E. & Damisa, M.A., 2015. "Transaction costs, inefficiency and productivity of acha (Digitaria exilis) farmers in Kaduna State, Nigeria," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 5(1).
    5. Svetlov, Nikolay M. & Kazakevich, Iryna A., 2010. "A microeconomic model for subsidies allocation: The case of Belarus," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52701, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    6. Kimhi, Ayal & Swinnen, Johan & Van Herck, Kristine & Vranken, Liesbet & Csaki, Csaba & Jambor, Attila & Koester, Ulrich & Herzfeld, Thomas & Glauben, Thomas & Dries, Liesbeth & Teuber, Ramona & Meyers, 2015. "Agricultural transition in Post-Soviet Europe and Central Asia after 25 years: International workshop in honor of Professor Zvi Lerman," Studies on the Agricultural and Food Sector in Transition Economies 207071, Institute of Agricultural Development in Transition Economies (IAMO).


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