Measuring the Influence of Networks on Transaction Costs Using a Non-parametric Regression Technique
All business transactions as well as achieving innovations take up resources, subsumed under the concept of transaction costs. One of the major factors in transaction costs theory is information. Firm networks can catalyse the interpersonal information exchange and hence, increase the access to non-public information so that transaction costs are reduced. Many resources that are sacrificed for transaction costs are inputs that also enter the technical production process. As most production data do not distinguish between these two usages of inputs, high transaction costs result in reduced observed productivity. We empirically analyse the effect of networks on productivity using a cross-validated local linear non-parametric regression technique and a data set of 384 farms in Poland. Our empirical study generally supports our hypothesis that networks affect productivity. Large and dense trading networks and dense information networks and household networks have a positive impact on a farm’s productivity. A bootstrapping procedure confirms that this result is statistically significant.
|Date of creation:||May 2013|
|Contact details of provider:|| Web page: http://www.ifro.ku.dk/english/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christian H.C.A. Henning & Géraldine Henningsen & Arne Henningsen, 2012.
"Networks and Transaction Costs,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 94(2), pages 377-385.
- Henning, Christian H.C.A. & Henningsen, Geraldine & Henningsen, Arne, 2011. "Networks and Transaction Costs," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114549, European Association of Agricultural Economists.
When requesting a correction, please mention this item's handle: RePEc:foi:wpaper:2013_11. 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: (Geir Tveit)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.