Estimating the Potential Gains from Mergers: The Danish Agricultural Extension Services

Peter Bogetoft and Dexiang Wang

No 24207, Unit of Economics Working Papers from Royal Veterinary and Agricultural University, Food and Resource Economic Institute

Abstract: We introduce simple non-parametric models to estimate the potential gains from merging production units. Three effects are distinguished. A merger may affect technical efficiency. It also affects the size of the operation which may or may not be advantageous depending on the return to scale properties of the underlying technologies. Lastly, it affects the mix of inputs available and the mix of outputs demanded. A merged unit face more "balanced" or "harmonic" input and output profiles which is typically advantageous. We use the model to estimate the potential gains from merging agricultural extension offices in Denmark.

Keywords: Teaching/Communication/Extension/Profession (search for similar items in EconPapers)
Pages: 25
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/24207/files/ew990005.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:rvaewp:24207

DOI: 10.22004/ag.econ.24207

Access Statistics for this paper

More papers in Unit of Economics Working Papers from Royal Veterinary and Agricultural University, Food and Resource Economic Institute Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().