Determinants of Asymmetric Costs In Soya Production

Abstract

Purpose: The study aimed to analyze the determinants of the asymmetric behavior of fixed costs in soybean production. Theoretical background: Although previous research indicates the presence of asymmetric costs (sticky costs theory) in the agricultural sector and, specifically, in soybean production, there is still a gap in testing which determinants explain this asymmetric condition. Methodology: The study used a quantitative methodology, with the estimation of a multiple linear regression model and parametric correlation tests, using data on costs, production capacity, production quantity and soybean prices for the period from 2009 to 2022. Results and conclusion: The results showed that the capacity and price factors were statistically significant in explaining the asymmetry of fixed costs. Price was also significant in explaining total and variable costs, which were also shown to be asymmetrical by the models used. Research implications: The study advances in verifying the determining factors of asymmetry and not just in pointing out the behavior of costs in this sector, as previous literature has done. Originality/value: The approach of the work and its results contribute to expanding empirical research related to the assumptions of the sticky costs theory in a relevant economic activity.