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Long and Short Term Economies of Scope in Dutch Vegetable Production

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  • Alfons Oude Lansink

Abstract

This paper derives long and short‐term economies of scope from a dual profit maximising model of production, using the concept of shadow prices. The dual model includes lagged netput quantities to reflect past experience in the production of outputs and the application of inputs. The framework is applied to aggregate data of specialised producers of vegetables in the Netherlands in the period 1981–1994. Adjustments of most netputs are instantaneous, with small adjustment lags being found for cucumbers, materials and services. Long and short‐term economies of scope indicate that at the sector level, there is an incentive towards specialisation in the production of tomatoes and a strong incentive towards diversification in case of all other outputs. Keywords: Generalised Maximum Entropy estimation, Economies of Scope, Horticulture.

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  • Alfons Oude Lansink, 2001. "Long and Short Term Economies of Scope in Dutch Vegetable Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 123-138, January.
    • Handle: RePEc:bla:jageco:v:52:y:2001:i:1:p:123-138
    DOI: 10.1111/j.1477-9552.2001.tb00913.x
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