| This study includes an estimate of cost functions for paddy farms in Formosa. Two types of estimational techniques are used; namely regression estimates and synthesized or budgeted cost curves. Long-run and short-run regression-derived curves are estimated for rice and sweet potato farms from samples which provide the observations. Estimates are for total cost functions with average cost functions computed per hectare. From sample observations, it was possible to derive, through regression estimates, only linear total cost functions. The non-linear average cost functions have only slight (economically unimportant) slopes beyond 2-5 hectares. Hence, large farms do not seem to be an important policy imperative. However, the steep slope of the average cost... |
