@article{Lesser:159446,
      recid = {159446},
      author = {Lesser, William H. and Greene, W. H.},
      title = {ECONOMIES OF SIZE AND OPERATING EFFICIENCY OF LIVESTOCK  MARKETS: A FRONTIER FUNCTION APPROACH},
      journal = {Journal of the Northeastern Agricultural Economics  Council},
      address = {1980-04},
      number = {1204-2016-96542},
      pages = {4},
      year = {1980},
      abstract = {A cost curve for livestock auction markets was estimated  using a
frontier function estimator. This estimator has the  advantages of
consistency and asymptotic efficiency (for  certain disturbance
specifications). The one-sided  residuals satisfy theoretical requirements for
cost curves  and allow estimates of operational efficiency. Results  indicate
little size savings above 50,000 LMU, (12 percent  of markets in 1976).
Estimated operational inefficiencies  ranged from 0 to 45 percent. Total
technical efficiency  (size diseconomies plus operational inefficiencies)  are
high for some markets and some size groups. Little  consolidation is
predicted for the industry because the  estimated cost of technical
inefficiency is small compared  to distance related costs (e.g., transport and
shrink).},
      url = {http://ageconsearch.umn.edu/record/159446},
      doi = {https://doi.org/10.22004/ag.econ.159446},
}