Knowledge Capital and Cost Structure in the U.S. Food and Fiber Industries

16 Pages Posted: 2 Apr 2020

See all articles by Catherine J. Morrison

Catherine J. Morrison

University of California

Donald Siegel

Arizona State University (ASU) - School of Public Affairs

Date Written: February 1998

Abstract

We explore the existence and extent of scale economies arising from three different external “knowledge capital” factors—investments in R…D, high‐tech, and human capital. These relationships are evaluated for the (two‐ and three‐digit level) food and fiber processing industries from the 1960s through the 1980s. The results generate strong evidence of scale economies but also suggest that the three knowledge capital factors have tended to reduce input use (and thus costs) for all privately demanded factors. The impacts on private capital are particularly large, although human capital appears to have a relatively large impact on labor use in the textiles industry.

Keywords: food and fiber industries, knowledge capital, production costs, scale economies, short and long run, L660, L670, O320

Suggested Citation

Morrison, Catherine J. and Siegel, Donald, Knowledge Capital and Cost Structure in the U.S. Food and Fiber Industries (February 1998). American Journal of Agricultural Economics, Vol. 80, Issue 1, pp. 30-45, 1998, Available at SSRN: https://ssrn.com/abstract=3566424 or http://dx.doi.org/10.2307/3180266

Catherine J. Morrison (Contact Author)

University of California

540 Alumni Ln
Davis, CA 95616
United States

Donald Siegel

Arizona State University (ASU) - School of Public Affairs

Farmer Building 440G PO Box 872011
Tempe, AZ
United States

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