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Nonparametric Estimation Of Multiproduct And Product-Specific Economies Of Scale

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  • Coffey, Brian K.
  • Featherstone, Allen M.

Abstract

Numerous studies have utilized nonparametric estimation of production efficiency but no such study focuses on multiproduct or product-specific economies of scale. A mathematical program is specified to nonparametrically estimate these measures for crops and livestock for Kansas farms. Results show that many farms would realize benefits from expansion.

Suggested Citation

  • Coffey, Brian K. & Featherstone, Allen M., 2004. "Nonparametric Estimation Of Multiproduct And Product-Specific Economies Of Scale," 2004 Annual Meeting, February 14-18, 2004, Tulsa, Oklahoma 34592, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeaft:34592
    DOI: 10.22004/ag.econ.34592
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    References listed on IDEAS

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    1. Banker, Rajiv D & Maindiratta, Ajay, 1988. "Nonparametric Analysis of Technical and Allocative Efficiencies in Production," Econometrica, Econometric Society, vol. 56(6), pages 1315-1332, November.
    2. Jean-Paul Chavas & Thomas L. Cox, 1988. "A Nonparametric Analysis of Agricultural Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 303-310.
    3. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    4. Chavas, Jean-Paul & Aliber, Michael, 1993. "An Analysis Of Economic Efficiency In Agriculture: A Nonparametric Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(1), pages 1-16, July.
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    Cited by:

    1. Gao, Zhifeng & Featherstone, Allen M., 2008. "Estimating economies of scope using the profit function: A dual approach for the normalized quadratic profit function," Economics Letters, Elsevier, vol. 100(3), pages 418-421, September.
    2. Alfons Oude Lansink & Spiro Stefanou & Magdalena Kapelko, 2015. "The impact of inefficiency on diversification," Journal of Productivity Analysis, Springer, vol. 44(2), pages 189-198, October.

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