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STRUCTURAL CHANGE IN U.S. CHEESE MANUFACTURING: A TRANSLOG COST ANALYSIS OF A PANEL OF CHEESE PLANTS

By Jorge M. Aguero and Brian W. Gould

Abstract

Over the last 20 years the cheese manufacturing sector has become the most important market for U.S. farm milk. Using a plant-level dataset encompassing the 1972-1997 period we examine the production characteristics of this industry. Using the results obtained from our cost function we estimate a series of measures of input substitutability and scale economies.Agribusiness,

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