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A dynamic analysis of the size distribution of firms: The case of the US dairy industry

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  • Jean-Paul Chavas

    (Agricultural Economics Department, University of Wisconsin-Madison)

  • Gilbert Magand

    (Agricultural Economics Department, University of Wisconsin-Madison)

Abstract

This article develops a time-varying Markov process of the aggregate size distribution of firms in an industry. This is used to specify and estimate an econometric model of the regional evolution of the number and size of US dairy farms. The empirical results provide evidence concerning the effects of milk price and feed cost on the structure of dairy production in selected regions.

Suggested Citation

  • Jean-Paul Chavas & Gilbert Magand, 1988. "A dynamic analysis of the size distribution of firms: The case of the US dairy industry," Agribusiness, John Wiley & Sons, Ltd., vol. 4(4), pages 315-329.
  • Handle: RePEc:wly:agribz:v:4:y:1988:i:4:p:315-329
    DOI: 10.1002/1520-6297(198807)4:4<315::AID-AGR2720040403>3.0.CO;2-2
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    References listed on IDEAS

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    1. Edwards, Clark & Smith, Matthew G. & Peterson, R. Neal, 1985. "The Changing Distribution of Farms by Size: A Markov Analysis," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 4.
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    Cited by:

    1. Alexander Gocht & Norbert Röder & Sebastian Neuenfeldt & Hugo Storm & Thomas Heckelei, 2012. "Modelling farm structural change: A feasibility study for ex-post modelling utilizing FADN and FSS data in Germany and developing an ex-ante forecast module for the CAPRI farm type layer baseline," JRC Working Papers JRC75524, Joint Research Centre (Seville site).
    2. Kimhi, Ayal & Tzur, Nitzan, 2011. "Long-Run Trends in the Farm Size Distribution in Israel: The Role of Part-Time Farming," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114759, European Association of Agricultural Economists.

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