Abstract This paper examines the agglomeration hypothesis, which states that a firm's productive efficiency is increased by closer proximity to other firms. Using a stochastic input distant function with heteroskedastic inefficiency effects, we find that the density of Ontario dairy farms has a significant positive economic effect on production efficiency. The finding has implications for understanding agricultural firm location and farmer‐led efforts to preserve agricultural farming activities in specific locations.
Stored only when both papers are in the corpus — 29 citations exist upstream.
Imported from OpenAlex (CC0) — nothing here is generated.