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Please use this identifier to cite or link to this item: http://purl.umn.edu/62046

Title: Regional asymmetries in farm size
Authors: Huettel, Silke
Margarian, Anne
von Schlippenbach, Vanessa
Authors (Email): Huettel, Silke (silke.huettel@agrar.hu-berlin.de)
Margarian, Anne (anne.margarian@vti.bund.de)
von Schlippenbach, Vanessa (vschlippenbach@diw.de)
Keywords: asymmetries
land market
capacity allocation
Vickrey auction
JEL Codes: L11
L12
Q12
Issue Date: 2010-04
Abstract: This paper explores how the initial farm size structure affects the exit decision of farms inducing free land capacities, and the allocation of the newly available land resources to the remaining farms in a particular region. We model an agricultural market where large and small firms first decide whether to leave the market or not; in case of continuing in production the farms compete for getting access to additional land resources in a Vickrey auction. We find that larger farms allocate more additional quantity than small farms; the latter are more likely to leave the market. An empirical illustration gives further support and reveals the relation between farm size structure, farm exits and growth of the large.
URI: http://purl.umn.edu/62046
Institution/Association: European Association of Agricultural Economists>114th Seminar, April 15-16, 2010, Berlin, Germany
Total Pages: 31
Collections:114th Seminar, April 15-16, 2010, Berlin, Germany

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