Abstract

http://ssrn.com/abstract=2054881
 
 

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The Influence of Size on Cost Behaviour Associated with Tactical and Operational Flexibility


Josep Argiles-Bosch


University of Barcelona

Josep García Blandón


Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

December 1, 2011

Estudios de Economía, Vol. 38, No. 2, pp. 419-455, December 2011

Abstract:     
This paper contributes with an empirical analysis, using a sample of farms, on the influence of size on cost behaviour under operational and tactical flexibility. Results indicate that small farms behave advantageously with respect to biggest farms in situations of operational and tactical flexibility. On the one hand, the increase in indirect costs with product diversification is higher in bigger farms than in smaller. On the other hand, while most farms are flexible enough to avoid cost stickiness, the biggest face considerable rigidities in downsizing indirect costs when activity decreases.

Number of Pages in PDF File: 38

Keywords: Agricultural economics, Tactical flexibility, Operational flexibility, Cost behaviour, Size

JEL Classification: M41, Q12, D24

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Date posted: May 8, 2012  

Suggested Citation

Argiles-Bosch, Josep and García Blandón, Josep, The Influence of Size on Cost Behaviour Associated with Tactical and Operational Flexibility (December 1, 2011). Estudios de Economía, Vol. 38, No. 2, pp. 419-455, December 2011. Available at SSRN: http://ssrn.com/abstract=2054881

Contact Information

Josep Argiles-Bosch (Contact Author)
University of Barcelona ( email )
Gran Via de les Corts Catalanes, 585
Barcelona, 08007
Spain
Josep García Blandón
Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )
Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
(34-3) 542 27 32 (Phone)
(34-3) 542 17 46 (Fax)
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