Economies of size and operating efficiency of livestock markets; a frontier function approach

Extract: 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 all...

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Bibliographic Details
Published inJournal of the Northeastern Agricultural Economics Council Vol. 9; no. 1; pp. 37 - 40
Main Authors Lesser, W.H, Greene, W.H
Format Journal Article
LanguageEnglish
Published Newark, DE Northeastern Agricultural and Resource Economics Association 01.04.1980
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Summary:Extract: 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. 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)
Bibliography:8115277
E70
ISSN:0163-5484
1068-2805
2398-4635
DOI:10.1017/S0163548400002399