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

Listed author(s):
  • 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.

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Article provided by Humboldt-Universitaet zu Berlin, Department for Agricultural Economics in its journal German Journal of Agricultural Economics.

Volume (Year): 58 (2009)
Issue (Month): 8 ()

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Handle: RePEc:ags:gjagec:134887
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  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. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 26(2), November.
  4. 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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