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Risk, Technical Efficiency And Market Transaction Costs In Different Organisational Forms: Evidence From The Oblast Tatarstan

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  • Hockmann, Heinrich
  • Gataulina, Ekaterina
  • Hahlbrock, Konstantin

Abstract

The paper investigates the significance of external and internal transaction costs and risk in agriculture in the Tatarstan Republic. The analysis is conducted for independent farms and farms which are members of agroholdings. The result indicates that external transaction costs are more marked in independent farms than in agroholding members. However, average prices do not differ among the organisational forms. With regard to internal transaction costs (or inefficiency) the result is the opposite. Inefficiency in agroholding members is considerably higher than in independent farms. However, the estimation suggests that this result is due to more intense risk management in agroholding members. Thus, members of a business group have a more intense use of inputs; however, these are rather allocated to reduce uncertainty of production than to increase production.

Suggested Citation

  • Hockmann, Heinrich & Gataulina, Ekaterina & Hahlbrock, Konstantin, 2011. "Risk, Technical Efficiency And Market Transaction Costs In Different Organisational Forms: Evidence From The Oblast Tatarstan," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114510, German Association of Agricultural Economists (GEWISOLA).
    • Handle: RePEc:ags:gewi11:114510
    DOI: 10.22004/ag.econ.114510
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    References listed on IDEAS

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    1. Raushan Bokusheva & Heinrich Hockmann, 2006. "Production risk and technical inefficiency in Russian agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(1), pages 93-118, March.
    2. Hockmann, Heinrich & Bokusheva, Raushan & Bezlepkina, Irina V., 2007. "Agroholdings membership: does that make a difference in performance?," 102nd Seminar, May 17-18, 2007, Moscow, Russia 10023, European Association of Agricultural Economists.
    3. Ulrich Koester, 2005. "A revival of large farms in Eastern Europe—how important are institutions?," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 103-113, January.
    4. Just, Richard E. & Pope, Rulon D., 1978. "Stochastic specification of production functions and economic implications," Journal of Econometrics, Elsevier, vol. 7(1), pages 67-86, February.
    5. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    6. Subal C. Kumbhakar, 2002. "Specification and Estimation of Production Risk, Risk Preferences and Technical Efficiency," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 8-22.
    7. Koester, Ulrich, 2003. "A Revival of Large Farms in Eastern Europe- How Important are Institutions?," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa: Plenary Sessions 245926, International Association of Agricultural Economists.
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    Cited by:

    1. Gregory Yom Din, 2013. "Performance and profit sensitivity to risk: a practical evaluation of the agro-industrial projects developed by Israeli companies for the CIS and Eastern European countries," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 1(1), pages 1-23, December.
    2. Gregory Yom Din, 2013. "Performance and profit sensitivity to risk: a practical evaluation of the agro-industrial projects developed by Israeli companies for the CIS and Eastern European countries," Demography, Springer;Population Association of America (PAA), vol. 1(1), pages 1-23, December.

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    Keywords

    Agribusiness; Agricultural and Food Policy; Agricultural Finance; Industrial Organization; Institutional and Behavioral Economics;
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