Effects of agricultural mechanization on economies of scope in crop production in Nigeria

Economies of scope (EOS) refer to the economic benefits of producing multiple types of outputs rather than specializing in producing a specific output. EOS closely relates to the potential for crop diversification. Using panel data from farm households and crop-specific production costs in Nigeria, we estimate how the adoption of animal traction or tractors affects EOS between rice, non-rice grains, legumes/seeds, and other crops, which are the crop groups that are most widely grown with animal traction or tractors in Nigeria.

Synopsis: Effects of agricultural mechanization on economies of scope in crop production in Nigeria

The theory of externalities, public goods, and club goods: Game theory and public goods

In this paper, an empirical framework is developed using economic theories to examine the relationships between variable costs and levels of activities at the Federal Aviation Administration's (FAA) en route centers. Using data for three fiscal years and employing time-series pooled cross section econometrics, we have found that the Air Traffic Organization's (ATO) service provisions in the en route centers have some economies of scale. Furthermore, we have found that while controllers' wage is important, it is not statistically significant in unit cost measured in aircraft flight operation counts. However, it is statistically significant when unit variable cost is measured and estimated in terms of aircraft flight operation hours. We have also found that degree of complexity, a measure of service attributes, does not impact cost. These findings, combined with on-going policy discussion on users' fees, imply that ATO may be well positioned to implement average cost pricing if cost is to be fully recovered for en route services. The implementation of marginal cost pricing may require external funding, perhaps from general funds of the U.S. Treasury.

https://journals.oregondigital.org/index.php/trforum/article/download/1116/1011

David Chin

Papers

Analysis of Cost at FAA’s En Route Centers: An Empirical Perspective

Analysis of Cost at the FAA's En Route Centers: An Empirical Perspective