Cost stickiness revisited: Empirical aplication for farms
Josep Maria Argiles Bosch and
Josep Garcia Blandon
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Josep Garcia Blandon: Universitat de Barcelona
No 187, Working Papers in Economics from Universitat de Barcelona. Espai de Recerca en Economia
Abstract:
This article reviews previous research regarding cost stickiness and performs an empirical analysis applied to a sample of farms. It recognizes that modelization of cost stickiness is a particular case of representation of cost variations as a function of output variations. It also discusses methodological issues and analyses cost stickiness for all registered farm costs and opportunity costs of family work. Costs exhibit a considerable level of rigidity. Even for variable costs, a decrease in activity involves a lower decrease in costs than the amounts involved when activity increases. While registered indirect costs slightly decrease when activity decreases, opportunity costs always increase. The study provides empirical evidence that cost stickiness is significantly reduced with better management decision practices.
JEL-codes: M10 M40 M41 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2007
New Economics Papers: this item is included in nep-acc and nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:bar:bedcje:2007187
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