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The Production Structure Of Pennsylvania Dairy Farms

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  • Grisley, William
  • Gitu, Kangethe W.

Abstract

The production structure of a selected cross-section sample of family owner-operated dairy farms is investigated using a translog variable cost function. Elasticities of scale, input substitution, and input own- and cross-price elasticities are estimated. At the sample mean herd size of 67 cows producing at 15,173 pounds of milk per cow, the elasticity of scale parameter was 1.00, implying constant returns to scale. The elasticities of substitution between feeds and hired labor and the own- and cross-price elasticities were inelastic.

Suggested Citation

  • Grisley, William & Gitu, Kangethe W., 1984. "The Production Structure Of Pennsylvania Dairy Farms," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 13(2), pages 1-9, October.
    • Handle: RePEc:ags:nejare:28925
    DOI: 10.22004/ag.econ.28925
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    References listed on IDEAS

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    1. 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.
    2. Harlow W. Halvorson, 1955. "The Supply Elasticity for Milk in the Short Run," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 37(5), pages 1186-1197.
    3. V. Eldon Ball & Robert G. Chambers, 1982. "An Economic Analysis of Technology in the Meat Products Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 699-709.
    4. Denny, Michael & Fuss, Melvyn A, 1977. "The Use of Approximation Analysis to Test for Separability and the Existence of Consistent Aggregates," American Economic Review, American Economic Association, vol. 67(3), pages 404-418, June.
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    Cited by:

    1. Kivanda, Lena & Fox, Glenn, "undated". "Falsification and the Practice of Agricultural Production Economists: A Methodological Assessment," Department of Agricultural Economics and Business 258724, University of Guelph.
    2. Bravo-Ureta, Boris E., 1985. "Estimates Of Cobb-Douglas And Translog Production Functions For Milk," 1985 Annual Meeting, August 4-7, Ames, Iowa 278514, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Msangi, Siwa & Rosegrant, Mark, 2007. "A Closer Look at the IMPACT of Climate Change on Country-Level Food Security and Nutrition," Conference papers 331635, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Ahmad, Munir & Bravo-Ureta, Boris & Wackernagel, Rick, 1993. "Factor Substitution in Dairy Farming: A Comparison of Allen and Morishima Elasticities," MPRA Paper 72934, University Library of Munich, Germany.

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