Administrative Costs and Production Efficiency.

Economists providing policy advice often justify recommendations of government non-interference in the allocation of resources between production sectors and free trade with reference to the Diamond and Mirrlees efficiency theorem. However, such policy advice may be misleading when, as is in general the case, administrative costs effectively restrict the set of feasible tax instruments available to the government. Under plausible assumptions about the administrative costs of alternative tax structures optimal government policies may in fact be associated with significant production inefficiencies.

Reducing costs in production processes

Cost reduction in manufacturing processes is nowadays very important. This paper deals with cost increases in Engineering Enterprises. When cutting conditions and tool durability optimizing, it is necessary to apply certain optimizing criterion within certain restraining conditions. The restrictions are given by technical parameters of a machine, tool, machined material, required quality of machined surface etc. The notion of bdquomachinability of materialsldquo is anbspcomplex of characteristics of the machined material which is monitored in the view of its fitness for the production in a certain way of machining. The essential economic criterion is the amount of production cost

Production costs across the EU in 2006

We have recently been involved in an EU project which is looking at farm accountancy cost estimation, the FACEPA (Farm Accountancy Cost Estimation and Policy Analysis of European Agriculture) project. Our part of this project was a relatively small section but very interesting as it involved looking at costs of production for a variety of organic products across several EU countries. The main products considered were milk, wheat and potatoes and the countries were UK, Denmark, Sweden, Poland, France, Italy, and Netherlands. The data were obtained for the year 2006 and all currencies were converted to Euros for ease of comparison. The main lessons learnt from this project (and found by previous authors prior to this) were that there is great variation between countries both in terms of costs and in terms of data collection

The Impact of increase in energy prices on sectoral costs of production of the Malaysian economy

This paper examines the impact of an increase in the petroleum price on the sectoral costs of production. Three components of costs of production, which comprise domestic materials, imported input, and labour have been identified. By using the input-output model, different scenarios of the petroleum price changes on sectoral costs of production were stimulated. The simulation results indicated that the fishing, forestry, and logging product, electricity and gas, cement, lime and plaster, and transport sectors are mostly affected by the increase in petroleum price. These sectors are expected to show large impact on costs of production as a result of petroleum price increase because these industries highly consume petroleum products as an intermediate input in their production process

Michigan Production Costs for Tart Cherries by Production Region

The weighted average cost of producing tart cherries in Michigan on a representative farm in 2009 is $0.36/lb. This cost was averaged across the three main production regions in Michigan and weighted by average per acre production for each region as published by the Michigan Agricultural Statistics Service. --Costs vary across the main production regions and by farm size. Costs are about$0.04/lb less for mid-sized farms in Northwest Michigan and $0.08/lb and$0.10/lb in West Central and Southwest Michigan, respectively. --This report was developed through interviews with tart cherry growers and other experts in each of the three main growing regions in 2005 and 2006. Many of the numbers were updated in 2009. --The cost of production calculation is based on estimates of operating costs, harvest costs, and management, interest and tax costs. It also includes an amortized cost of establishing an orchard and employing the land in production (versus some other use). The following tables summarize the cost findings for each of the production regions.Tart cherry, costs, production, Michigan, Agribusiness, Crop Production/Industries, Q100, Q120,

Seasonality and Costs of Production on Irish dairy farms from 1994-2008

working paperPrevious research has highlighted the economic advantages of spring calving in countries such as Ireland that have a long spring/summer grazing season. However, the widespread adoption of such a production system leads to a highly seasonal milk supply and a range of problems that are associated with seasonality. The objective of this paper is to use historical data to quantify the economic benefits of a spring calving system. Data from over 400 dairy farms in Ireland over a period of 15 years is examined. Fixed, random and between effects panel models are estimated to test the significance of calving season on production costs. The results show the effect of calving season is significant at lowering production costs. These models returned results suggesting that high compact early Spring herds have significantly lower costs than over seasons. However the fixed effect model demonstrates little difference between production costs in different seasons suggesting individual effects such as the ability of the farmer may play a role in reduction of costs. Herds that are calved over a shorter period tend to have lower production costs

Sensitivity Analysis of Transportation Production Costs in Indonesia

The transportation production cost (TPC) considerably has strong influence to the national economic condition. This paper focused on the analysis of the transportation production cost sensitivity in relation to the variation of the external affecting factor, which are fuel price, rupiah exchange rate and Bank of Indonesia interest rate. Based on the R2 values, the TPC components in general have significant correlation, with the fuel prices. However, they do not have high correlation to the fluctuation of interest rate and rupiah exchange rate. The sensitivity analysis shows that a 10% rise on fuel price would cause 6%, 2%, 7%, 2.4%, and 4.9% rise on the TPC of intercity bus, ferry ship, interisland ship, train, and airline, respectively

Characteristics and Production Costs of U.S. Corn Farms, 2001

Corn production costs per bushel vary considerably among U.S. producers, depending on yields, farm location, tillage practices, irrigation, previous field usage, enterprise size, and weather. In 2001, the operating and ownership costs per bushel for corn ranged from an average of $1.08 for the 25 percent of U.S. producers with the lowest costs to an average of$2.98 for the 25 percent with the highest costs. Heartland corn producers had the lowest costs per bushel on average. Corn producers with small corn enterprises had the highest costs due to their lower-than-average corn yields. Operators of part-time and low-sales corn farms have higher production costs per bushel than operators of farms with higher sales. In 2001, 59 percent of corn producers earned a positive net return per bushel after covering their operating and ownership costs from the market value of corn. When loan deficiency payments (LDPs) on corn were added to the value of corn production, 64 percent of producers covered their corn operating and ownership costs. When income consists of the value of production, LDPs, production flexibility contract, market loss, and disaster assistance payments, 73 percent of producers earned a positive return per bushel after accounting for their operating and ownership costs.corn, costs of production, operator characteristics, production practices, cost variation, Agricultural Resource Management Survey, ARMS, Crop Production/Industries,