EFFICIENCY GAINS DUE TO ECONOMIES OF SCOPE AND SCALE

Using a non-parametric linear programming approach, our contribution is (1) to examine if efficiency gains are realized due to diversification and (2) to demonstrate the diversification efficiency gains realized is a product of economies of scope efficiency gains and scale efficiency gains employing U.S. cropping sector made up of nine major crops for the period, 1975-1996. Results indicate efficiency gains are realized due to diversification for all the two-crop combinations. Further the average diversification efficiency gains are explained by scope efficiency gains and scale efficiency gains, with the t-test at the 5% level of significance indicates the mean diversification efficiency gains, scope efficiency gains and scale efficiency gains (with exceptions) are significantly different from one.


Issue Date:
Jan 18 2017
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/252790




 Record created 2017-04-01, last modified 2017-08-29

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