Speaker:
Jean-Paul Chavas
- University of Wisconsin
Monday, April 27, 2015
at
12:30 PM
Aula Menegazzi, Palazzo di Economia
This paper investigates the microeconomics of specialization and its effects on firm productivity. We define economies of specialization as the productivity gains obtained under greater specialization. The paper shows how scale effects and non-convex technology affect economies of specialization. Using a nonparametric approach, we present an empirical analysis applied to Korean farms. The results indicate that non-convexity is prevalent especially on large farms. We find that non-convexity generates large productivity benefits from specialization on larger farms (but not on smaller farms), providing a strong incentive for large farms to specialize. We evaluate the linkages between non-convexity, firm size and management.
- Programme Director
-
Marcella
Veronesi
-
External reference
-
Marcella Veronesi
- Publication date
-
January 26, 2015