Scale Neutrality Of Bovine Somatotropin: Ex Ante Evidence From The Southeast
Bovine somatotropin (BST), a new technology capable of enhancing a cow's ability to produce milk by 7-23 percent, is expected to be available for commercial use soon. Ex ante survey procedures are used to determine the potential effect of BST on the size distribution of dairy farms in the Southeast. Results of logit analysis indicate a positive link between farm size and (1) farmers' knowledge of BST and (2) intentions to adopt early, suggesting BST will not be scale neutral. An estimated "price elasticity" of -1.8 to -2.1 indicates an elastic demand for the input. Price, therefore, may be an effective instrument for attenuating the scale bias.
Volume (Year): 22 (1990)
Issue (Month): 02 (December)
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- Just, Richard E & Zilberman, David, 1983. "Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 307-328, July.
- Milligan, Robert & Lesser, William H. & Magrath, William B. & Tauer, Loren & Bauman, Dale, 1985. "Biotechnology and Dairy Industry: Production costs, Commercial Potential, and the Economic Impact of the Bovine Growth Hormone," Research Bulletins 183730, Cornell University, Department of Applied Economics and Management.
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