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Social And Scale Efficiency Gains Due To Vertical Integration In The U.S. Hog Sector

  • Helmers, Glenn A.
  • Shaik, Saleem
  • Atwood, Joseph A.
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    Using a non-parametric linear programming approach, our contribution is (1) to examine if efficiency gains in hog production are realized due to vertical integration and (2) to demonstrate the efficiency gains that are realized are a product of economies of scope and scale. The model uses U.S. hog sector data for the period, 1982-1997. Results indicate efficiency gains are realized due to vertical integration and can be explained by scope and scale efficiency gains. The t-test at the 5% level of significance indicates the mean overall efficiency gains; scope efficiency gains and scale efficiency gains are significantly different from one.

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    File URL: http://purl.umn.edu/35143
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    Paper provided by Southern Agricultural Economics Association in its series 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama with number 35143.

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    Date of creation: 2003
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    Handle: RePEc:ags:saeatm:35143
    Contact details of provider: Web page: http://www.saea.org/
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    1. Lawrence, Colin, 1989. "Banking Costs, Generalized Functional Forms, and Estimation of Economies of Scale and Scope," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 21(3), pages 368-79, August.
    2. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    3. Christensen, Laurits R & Greene, William H, 1976. "Economies of Scale in U.S. Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 655-76, August.
    4. Eaton, B Curtis & Lemche, S Q, 1991. "The Geometry of Supply, Demand, and Competitive Market Structure with Economies of Scope," American Economic Review, American Economic Association, vol. 81(4), pages 901-11, September.
    5. Kislev, Yoav & Peterson, Willis, 1982. "Prices, Technology, and Farm Size," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 578-95, June.
    6. Panzar, John C & Willig, Robert D, 1977. "Economies of Scale in Multi-Output Production," The Quarterly Journal of Economics, MIT Press, vol. 91(3), pages 481-93, August.
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