Estimating managerial transaction costs on dairy farms in the Moscow region
To track changes in managerial transaction costs (MTC) on dairy corporate farms located in the Moscow oblast of Russia, the paper develops an estimator of such costs per unit of output. The estimator uses farm-level data on inputs, outputs and prices. The estimations are done using a non-parametric production frontier model. The estimates are consistent with theoretical predictions: improving allocative efficiency is achieved at the cost of growing dynamics of MTC, while within a cross section this correspondence is opposite; larger farms, as well as farms achieving higher technical efficiency, face higher MTC. In 2005-2007 the growth of MTC is likely to be driven by negative institutional changes, because no positive changes in the allocative efficiency is revealed during this period.
Managerial transaction costs, transaction costs function, production frontier, corporate farms, Russia, Moscow oblast, dairy production