Do Purchasing Patterns Differ Between Large and Small Dairy Farms? Econometric Evidence from Three Wisconsin Communities
Document Type
Article
Journal/Book Title
Agricultural Resource Economics Review
Publication Date
2002
Publisher
NAREA
Volume
31
Issue
1
First Page
28
Last Page
38
Abstract
Using farm data from three dairy-dependent communities in Wisconsin, this study addresses the question: Do small farms spend more locally than large farms? The work develops a theoretical model of farm cost functions with transaction costs varying between local and distant input sources. This model is then tested econometrically, describing farm costs and where they were spent as a function of transaction/search costs and farm characteristics. The results suggest that scale does matter to farm spending patterns.
Recommended Citation
Foltz, J., D. Jackson-Smith, and L. Chen. 2002. “Do Purchasing Patterns Differ Between Large and Small Dairy Farms? Econometric Evidence from Three Wisconsin Communities,” Agricultural Resource Economics Review Vol. 31(1): 28-38.
