Abstract
The aim in this paper is to investigate economies of scale and scope among Norwegian dairy and crop producing farms, controlling for regional differences. Unlike previous studies in which a common technology was assumed, we estimate economies of scale and scope to account for different technologies for specialized and mixed (diversified) farms. Our analysis is based on translog cost functions using farm-level data for the period 1991-2014. The results suggest that both economies of scale and scope persist in Norwegian dairy and crop producing farms. We also find that dairy farms have an economic incentive to integrate dairy farming with crop production in all regions of Norway.
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