Diversification economies in dairy farming – empirical evidence from Germany

摘要: This article explores how farm size is related to economic benefits from diversification. Using a data set pertaining Bavarian dairy farms (2000–2014), we estimate an input distance function (IDF) derive cost complementarities between distinct outputs. A Bayesian estimation technique used improve the theoretical consistency of IDF. The results show that small are more likely benefit diversification milk and livestock production, while larger tend crop production. Both managerial policy implications discussed.