Tveteras, R

Battese, George Edward

2006

Agglomeration externalities can have positive effects on both the production possibility frontier and technical inefficiency of firms. Increased levels of localized knowledge spillovers and substitution of internal inputs with external inputs may lead to fewer errors in decision-making and execution of production tasks, thus causing firms to become technically more efficient relative to the production frontier. When we estimate a stochastic frontier production model on a large panel of salmon aquaculture farms, we find econometric support for positive agglomeration externalities on both the production frontier and technical inefficiency.

Journal of Regional Science, 46(4), p. 605-625

1467-9787

0022-4146

https://hdl.handle.net/1959.11/1668

Blackwell Publishing, Inc

Agglomeration externalities, productivity, and technical inefficiency

Journal Article

Publication