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Technological Change and Economies of Scale in U.S. Poultry Slaughter

  • Milton Madison
  • James MacDonald
  • Michael Ollinger

This paper uses a unique data set provided by the Census Bureau to empirically examine technological change and economies of scale in the chicken and turkey slaughter industries. Results reveal substantial scale economies that show no evidence of diminishing with plant size and that are much greater than those realized in cattle and hog slaughter. Additionally, it is shown that controlling for plant product mix is critical to cost estimation and animal inputs are much more elastic to prices than in either cattle or hogs. Results suggest that consolidation is likely to continue, particularly if demand growth diminishes.

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File URL: ftp://ftp2.census.gov/ces/wp/2000/CES-WP-00-05.pdf
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Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 00-05.

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Date of creation: Apr 2000
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Handle: RePEc:cen:wpaper:00-05
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  1. Gallant, A. Ronald & Jorgenson, Dale W., 1979. "Statistical inference for a system of simultaneous, non-linear, implicit equations in the context of instrumental variable estimation," Journal of Econometrics, Elsevier, vol. 11(2-3), pages 275-302.
  2. Stevenson, Rodney, 1980. "Measuring Technological Bias," American Economic Review, American Economic Association, vol. 70(1), pages 162-73, March.
  3. Allen, W Bruce & Liu, Dong, 1995. "Service Quality and Motor Carrier Costs: An Empirical Analysis," The Review of Economics and Statistics, MIT Press, vol. 77(3), pages 499-510, August.
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