Agglomeration Effects in Ontario's Dairy Farming

Getu Hailu and Brady Deaton

No 211700, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: This paper examines the agllomeration hypothesis: i.e., firm productive efficiency is increased by closer proximity to other firms. Using a stochastic input distant function with heteroskedastic inefficiency effects, we find that the density of Ontario dairy farms has a significant positive economic effect on production efficiency. The finding has implications for understanding agricultural firm location and farmer led efforts to preserve agricultural farming activities in some regions.

Keywords: Food Consumption/Nutrition/Food Safety; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 33
Date: 2015
New Economics Papers: this item is included in nep-eff
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Journal Article: Agglomeration Effects in Ontario’s Dairy Farming (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:211700

DOI: 10.22004/ag.econ.211700

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