Models of Firm Growth

Abstract

1 If at some future date there were a change in external circumstances, e.g., prices or technology, then a new decision situation would arise for which new policy variables would be selected. This implies a comparative-statics approach.A. N. HALTER i8 professor of agricultural economics, Oregon State University.

Farm Growth and Estate Transfer in an Uncertain Environment

“…Research and writings on the growth process are so numerous that no attempt is made here to treat them exhaustively. Several excellent firm growth review articles and publications with extensive reference lists are available [4,12,22,28].…”

“…The models were also intended for use in research on the impacts of key economic variables, the effects of alternative growth strategies, and the effects of alternative gift and estate planning strategies on the economic growth of the firm. The two simulation models were developed separately [22,38]. Figure 1 shows the components of each model and illustrates how they are coordinated for use in the analysis presented here.…”

Dynamic Programming: A Tool for Farm Firm Growth Research

“…Changes in the number, size and organization of farm firms in the U.S. in the past two decades have emphasized the need to explain the process of change from the point of view of the individual farm firm. In response to this need, several theoretical models relating to growth of farm firms have been developed and tested [2,4,6,7,8,9,131. Developments in analytical techniques and high speed computers have facilitated solving complex problems such as those of farm firm growth.'…”

“…Other assumptions for developing and implementing the model are presented in rderenca [9, 101 6. It is assumed that the modificatiom in traditional firm theory necessary to treat dynamic rimtiom can be made and their impliatioac are at lcut generally unduttood.…”

A dynamic linear programming model of farm firm growth in North Central Iowa

“…Halter (17) credits the agricultural economist's interest in farm firm growth models to 1) the inability of the usual static firm theory to explain the observed difference in farm growth rates and 2) the in ability of empirical studies of farm costs to confirm the existence of theoretical U-shaped long run cost curves. These reasons and others have generated the recent and perhaps tardy interest in farm firm growth.…”