Skip to main content

Estimating economies of scope and scale under price risk and risk aversion

Buy Article:

$53.17 plus tax (Refund Policy)

Abstract:

This study uses duality to examine the effects of excluding output price risk and risk aversion on cost structures. Using data for Kansas wheat and beef-cow operations, a dual risk model was used to determine multi-product and product-specific scale economies, and economies of scope. Estimates for these measures were compared with those obtained from a deterministic model. The results show that product-specific scale economies are over-estimated and economies of scope and multi-product scale economies are under-estimated for the deterministic model compared to the risk model.

Document Type: Research Article

DOI: https://doi.org/10.1080/00036840500367716

Affiliations: 1: Department of Economics, The University of the West Indies, Kingston 7, Jamaica 2: Department of Agricultural Economics, Kansas State University, Manhattan, USA

Publication date: 2006-02-10

More about this publication?
  • Access Key
  • Free ContentFree content
  • Partial Free ContentPartial Free content
  • New ContentNew content
  • Open Access ContentOpen access content
  • Partial Open Access ContentPartial Open access content
  • Subscribed ContentSubscribed content
  • Partial Subscribed ContentPartial Subscribed content
  • Free Trial ContentFree trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more