24 research outputs found

    Gains and structural effects of exploiting scale-economies in Norwegian dairy production

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    In this paper, we present calculations of the economic gains in terms of reduced costs by exploiting scale-economies in dairy production in Norway, and the effect this would have had on the number of farms. We also explore whether or not optimal scale and unexploited scale-economies change over time due to scale-augmenting technical change. The analysis is based on homothetic cost functions estimated by means of data for individual dairy farms for the period 1972-1996. For 1972, we find that, by full exploitation of scale-economies, the costs could have been reduced by almost 40%, while the number of farms would have been reduced by more than 85%. The number of small farms has been substantially reduced in the period considered. This fact, combined with small scale-augmenting technical change, implies that the gains and structural effects of exploiting scale-economies have decreased over time. In 1996, costs could have been reduced by close to 30% by full exploitation of scale-economies, while the number of farms would have been reduced by slightly more than 70%. Thus, both gains and structural effects are substantially less than in 1972. Nevertheless, the calculated gains for 1996 make almost 5 billion NOK. This corresponds almost exactly to the total public support to the dairy farms in 1996. The unexploited scale-economies are largely due to the agricultural policy. Thus, a substantial share of the same can be considered as part of the 'price' the Norwegian society has to pay for this policy. In addition, there are likely to be large hidden costs of this policy due in particular to the quota system and other direct production regulations. They imply that technical innovations and other efficiency-improving investments requiring increased production to be profitable are not carried out. This is the more likely explanation for the extremely poor efficiency development in Norwegian dairy production in the period studied. © 2001 Elsevier Science B.V. All rights reserved

    An empirical investigation of CPA firm attributes and professional liability coverage

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    The purpose of this study is to determine what variables are significant in predicting the type of professional liability insurance, if any, an accounting firm would have. The three dependent variables are firms that: purchased commercial liability insurance, are members of a captive company or risk retention group, and have no commercial liability insurance coverage. Independent variables include characteristics of the firm (form of the business, size of the firm) and of the client (recently merged clients, clients that are financial institutions). The study uses the multinomial logit model with maximum likelihood. The Hausman-McFadden test is used to test for independence of irrelevant alternatives. Various methods are used to detect multicollinearity, the most sophisticated of which is the Belsley, Kuh, and Welsch test. Correlation tables and stepwise backward elimination are also used. The seven significant variables identified by the model as useful for predictors are: (1) Is the firm a sole practitioner? (2) What is the size of the firm? (3) What is the firm\u27s review and compilation revenue as a percent of total revenue? (4) Does the firm audit, review, or compile for companies recently merged? (5) Does the firm perform a cold review of audits? (6) Does the firm evaluate new clients, and (7) Does the firm use engagement letters

    Chemical extractions to determine metal partitioning to sediments and soils

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    Previously, we have reported on methods for sequential extractions to determine the partitioning of contaminants and stable elements within soils and sediments. Recently, we have explored single step extractions to obtain similar information. Using a well characterized pond sediment, we have applied single step extractions to remove stable metals partitioned as exchangeable metals, those metals associated with iron oxides, and those metals associated with natural organic matter. The results obtained using single extractions will be compared to observations made when a sequential extraction method is employed with the same sediment
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