IDEAS home Printed from
   My bibliography  Save this paper

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


  • Helmers, Glenn A.
  • Shaik, Saleem
  • Atwood, Joseph A.


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.

Suggested Citation

  • Helmers, Glenn A. & Shaik, Saleem & Atwood, Joseph A., 2003. "Social And Scale Efficiency Gains Due To Vertical Integration In The U.S. Hog Sector," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35143, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saeatm:35143

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Rolf Färe, 1986. "Addition and Efficiency," The Quarterly Journal of Economics, Oxford University Press, vol. 101(4), pages 861-865.
    2. 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 368-379, August.
    3. Kislev, Yoav & Peterson, Willis, 1982. "Prices, Technology, and Farm Size," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 578-595, June.
    4. 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.
    5. B. Delworth Gardner & Rulon D. Pope, 1978. "How is Scale and Structure Determined in Agriculture?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 295-302.
    6. 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 655-676, August.
    7. John C. Panzar & Robert D. Willig, 1977. "Economies of Scale in Multi-Output Production," The Quarterly Journal of Economics, Oxford University Press, vol. 91(3), pages 481-493.
    8. 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 901-911, September.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Nonparametric linear programming approach; Vertical integration; Scale; Scope; Efficiency gains; U.S. Hog sector; Industrial Organization; O3; C6; Q1;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:saeatm:35143. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.