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The Production Structure of Pennsylvania Dairy Farms

Published online by Cambridge University Press:  10 May 2017

William Grisley  and
Kangethe W. Gitu
William Grisley
Affiliation:
Pennsylvania State University
Kangethe W. Gitu
Affiliation:
Pennsylvania State University
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Abstract

The production structure of a selected cross-section sample of family owner-operated dairy farms is investigated using a translog variable cost function. Elasticities of scale, input substitution, and input own- and cross-price elasticities are estimated. At the sample mean herd size of 67 cows producing at 15,173 pounds of milk per cow, the elasticity of scale parameter was 1.00, implying constant returns to scale. The elasticities of substitution between feeds and hired labor and the own- and cross-price elasticities were inelastic.

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Articles
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Northeastern Journal of Agricultural and Resource Economics , Volume 13 , Issue 2 , October 1984 , pp. 245 - 253
Copyright
Copyright © 1984 Northeastern Agricultural and Resource Economics Association 

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