Technological Change and Economies of Scale in Danish Agriculture
This paper presents the results of an empirical analysis of technological change and economies of scale in Danish agriculture. The estimation is based on a multi-output, multi-input translog cost function and covers the period 1973-1995. The results show that technological change varied considerably. The average rate of technological change was highest on arable farms (4.0% per year) and lowest on dairy farms (1.0% per year), with pig farms in between (2.2% per year). Alt three farm types showed an increasing trend in technological change over time, and technological changes were typically biased. The elasticity of size was considerably above 1 for both small and large arable farms and dairy farms indicating a considerable economic incentive to increase the farm size. For pig farms only the small farms showed a clear incentive to increase the farm size. The results support the hypothesis that policy measures have had a significant influence on the differences in development within the three farm types analysed.
|Date of creation:||2000|
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