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Evidence of Scope Economies in the Australian Wheat-Sheep Zone

  • Fleming, Euan M.
  • Villano, Renato A.
  • Fleming, Pauline

Scope economies can be used in studies of farming systems to provide a measure of synergies between different farm enterprises and between activities within farm enterprises. In this paper, they are reported for farms in a benchmarking group in the Wheat-Sheep Zone in New South Wales, Australia, by estimating a stochastic input distance function and calculating an ‘economies of scope parameter’. Evidence is presented of scope economies between sheep and beef enterprises, sheep and crop enterprises, and beef and crop enterprises.

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Paper provided by Agricultural Economics Society in its series 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK with number 36849.

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Date of creation: 30 Mar 2008
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Handle: RePEc:ags:aes008:36849
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  1. Coelli, Tim J. & Fleming, Euan M., 2003. "Diversification Economies And Specialisation Efficiencies In A Mixed Food And Coffee Smallholder Farming System In Papua New Guinea," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25841, International Association of Agricultural Economists.
  2. Jean-Paul Chavas & Kwansoo Kim, 2007. "Measurement and Sources of Economies of Scope: A Primal Approach," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(3), pages 411-427, September.
  3. Grosskopf, Shawna & Hayes, Kathy & Yaisawarng, Suthathip, 1992. "Measuring Economies of Diversification: A Frontier Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(4), pages 453-59, October.
  4. Deller, Steven C & Chicoine, David L & Walzer, Norman, 1988. "Economies of Size and Scope in Rural Low-Volume Roads," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 459-65, August.
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