University of Wisconsin Center for Cooperatives
Journal of Agricultural Cooperation

Title Cooperative and Investor-Oriented Firm Efficiency: A Multiproduct Analysis
Author(s) Jay T. Akridge and Thomas W. Hertel
Series Volume 7
Issue Date 1992
Abstract A multiproduct variable cost function was used to compare the efficiency of midwestern cooperative and investor-oriented grain and farm supply firms. Results suggest that cooperatives are no less efficient in a variable cost sense than their investor-oriented counterparts. Concerning fixed input-variable cost elasticities, investor-oriented firms may be more effective in their use of plant and equipment, but cooperatives make more efficient use of other fixed inputs. However, both types of firms are overinvested in both types of fixed inputs.
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