Returns to Scale in Agriculture: An Empirical Investigation of Japanese Experience

Richard Grabowski and Onesimo Sanchez

European Review of Agricultural Economics, 1986, vol. 13, issue 2, 189-98

Abstract: In this paper a ray-homothetic production function is used to determine returns to scale for Japanese agriculture for the period 1878 to 1940. The advantage of the ray-homothetic function is that it allows returns to scale to vary with both output and factor intensity. The results show that for this period Japanese agriculture operated under conditions of increasing returns to scale. Copyright 1986 by Oxford University Press.

Date: 1986
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