As the U.S. population continues to increase, planning for future water quantity and quality needs is important. Historically, many municipalities have relied heavily on surface water as their major source of drinking water, but recently, technological advancements have improved the economic viability of reverse-osmosis (RO) desalination of brackish-groundwater as a potable water source. Brackish-groundwater may be an alternative water source that provides municipalities an opportunity to hedge against droughts, political shortfalls, and protection from potential surface-water contamination. This research specifically focuses on investigating economies of size for conventional surface-water treatment and brackish-groundwater desalination by using results from four water treatment facilities in the Texas Lower Rio Grande Valley (LRGV). The methodology and results can have direct implications on future water planning. Economic and financial life-cycle costs were estimated for a "small"- conventional-surface water facility (2.0 million gallons per day (mgd) Olmito facility) and a "small"-brackish-groundwater desalination facility (1.13 mgd La Sara facility). Prior analyses were modified to determine similar costs for a "medium"-sized conventional surface-water facility (8.25 mgd McAllen Northwest facility) and a "medium"-sized brackish-groundwater desalination facility (7.5 mgd Southmost facility). The life-cycle costs of the "small" Olmito facility are compared to the life-cycle costs of the "medium" Northwest facility and the life-cycle costs of the "small" La Sara facility are compared against the life-cycle costs of the "medium" Southmost facility to determine the existence of economies of size. This research was facilitated by the use of the CITY H20 ECONOMICS© and the DESAL ECONOMICS© Excel® spreadsheet models previously developed by Texas AgriLife Research and Texas AgriLife Extension Service agricultural economists. Although the results are applicable to the Texas LRGV, economies of size are apparent in conventional surface-water treatment and constant economies of size are evident in brackish-groundwater desalination. This research also concludes that RO desalination of brackish-groundwater is economically competitive with conventional surface-water treatment in this region.

Master of Science / Department of Agricultural Economics / Michael R. Langemeier / This thesis will determine if economies of size are present in production agriculture or the farming sector and if convergence or divergence is occurring. Change in the farming sector was analyzed using five-year moving averages from 1973 to 2007. Six key variables were analyzed; value of farm production, total acres, economic total expense ratio, operating profit margin ratio, asset turnover ratio, and percent of livestock income. Data from the Kansas Farm Management Association were used in this study. To be included in the study, a farm had to have five years of continuous, usable data for a five-year period between 1973 and 2007. Moving five-year averages were calculated for the farms that met this qualification. Data were sorted by value of farm production and broken down by quartiles and deciles. Trend regressions were used to calculate growth rates of the key variables and the difference between the top and bottom quartiles of the variables. Results suggested that acreage per farm is increasing, farms are doing better at covering their total economic costs, profit margin per farm has decreased, farms are utilizing their assets better, and the percent of livestock income per farm has decreased. When regressing the difference between the top and bottom quartiles to determine growth rates, it was evident that the gaps between the top and bottom quartiles of five of the six variables have widened. The differences in the percent of livestock income between farm quartiles and deciles were not significant. Convergence analysis confirmed the results of the trend regressions and suggested that divergence is evident in the Kansas farming sector. Graphical representation supports the findings of this thesis.

Este estudo tem a finalidade de estimar uma função de custo transcendental logarítmica para a atividade de produção de soja, e através dela determinar o tamanho ótimo da atividade de produção de soja, a fim de inferir sobre a existência, ou não, de economias de escala no setor. Adicionalmente, objetiva-se a caracterização sócio-econômica dos produtores de soja pesquisados e a análise das possibilidades de substituição dos recursos no processo produtivo da atividade. O referencial teórico do estudo é a teoria da dualidade da função custo e da função de produção. Os dados utilizados para a análise são de corte transversal, obtidos a partir de uma pesquisa de campo, realizada de agosto a dezembro de 2005, em uma amostra de 218 (duzentos e dezoito) produtores de soja nos cinco principais estados produtores do país: Mato Grosso, Paraná, Rio Grande do Sul, Goiás e Mato Grosso do Sul. A amostra representa as realidades regionais, com o predomínio de produtores com pequenas propriedades nos estados da região Sul do país e produtores com propriedades maiores no Centro-Oeste brasileiro. As elasticidades-preço cruzadas mostraram que há complementaridade entre os fatores mão-de-obra e capital. As elasticidades de substituição parcial de Allen indicaram substituição entre a maior parte dos fatores de produção. Houve uma forte relação de complementaridade entre os fatores capital e mão-de-obra e de substituição entre os fatores químicos e mão-de-obra. Na classificação de Morishima, capital e mão-de-obra são complementares quando o preço de capital varia, e substitutos quando varia o preço do fator mão-de-obra. As estimativas de economias de escala obtidas apontam uma escala ótima de produção de aproximadamente 11.880 toneladas de soja em grão, que pode ser obtida em propriedades com aproximadamente 4.000 hectares de área de produção de soja. Os resultados empíricos obtidos neste trabalho sugerem que as economias de escala estejam determinando uma nova configuração para o setor de produção de soja no Brasil. No entanto, algumas características da pequena produção podem minimizar a importância dessas economias e estão sendo determinantes para a manutenção da produção em pequena escala na região Sul do país, no curto prazo. / The main objective of this paper is to estimate a translog cost function for the soybean production activity in Brazil, to infer about the existence of scale economies in the sector. We use cross-section data obtained through a field research undertake during the period of September to December 2004, in a sample of 218 soybean-producing units in the main producer states in Brazil. The paper also addresses a socio-economic characterization of the surveyed units and analyses substitution possibilities between inputs. The sample reflects regional detail of production structure, with smaller producers concentrated in Southern Brazil and larger producers concentrate in the Center-West region. The elasticities of derived demand showed complementary relation between labor and capital. The Allen partial elasticities of substitution show substitution between most of the production inputs. Capital and labor are complements and chemical and labor are substitutes. In terms of Morishima elasticity of substitution capital and labor are complements when capital price varies and they are substitutes when labor price varies. The economies of scale estimates point to an optimal scale of production around 12 thousand ton that could be produced in an area with approximately 4,000 hectares. The results suggest that the presence of scale economies could be determining a new production structure for the sector in Brazil. And finally, the evidence found also suggests that some aspects of the small production system work to reduce the importance of these scale economies, and are determinant to keep the small-scale operations in the traditional regions in the short run.

Este estudo tem a finalidade de estimar uma função de custo transcendental logarítmica para a atividade de produção de soja, e através dela determinar o tamanho ótimo da atividade de produção de soja, a fim de inferir sobre a existência, ou não, de economias de escala no setor. Adicionalmente, objetiva-se a caracterização sócio-econômica dos produtores de soja pesquisados e a análise das possibilidades de substituição dos recursos no processo produtivo da atividade. O referencial teórico do estudo é a teoria da dualidade da função custo e da função de produção. Os dados utilizados para a análise são de corte transversal, obtidos a partir de uma pesquisa de campo, realizada de agosto a dezembro de 2005, em uma amostra de 218 (duzentos e dezoito) produtores de soja nos cinco principais estados produtores do país: Mato Grosso, Paraná, Rio Grande do Sul, Goiás e Mato Grosso do Sul. A amostra representa as realidades regionais, com o predomínio de produtores com pequenas propriedades nos estados da região Sul do país e produtores com propriedades maiores no Centro-Oeste brasileiro. As elasticidades-preço cruzadas mostraram que há complementaridade entre os fatores mão-de-obra e capital. As elasticidades de substituição parcial de Allen indicaram substituição entre a maior parte dos fatores de produção. Houve uma forte relação de complementaridade entre os fatores capital e mão-de-obra e de substituição entre os fatores químicos e mão-de-obra. Na classificação de Morishima, capital e mão-de-obra são complementares quando o preço de capital varia, e substitutos quando varia o preço do fator mão-de-obra. As estimativas de economias de escala obtidas apontam uma escala ótima de produção de aproximadamente 11.880 toneladas de soja em grão, que pode ser obtida em propriedades com aproximadamente 4.000 hectares de área de produção de soja. Os resultados empíricos obtidos neste trabalho sugerem que as economias de escala estejam determinando uma nova configuração para o setor de produção de soja no Brasil. No entanto, algumas características da pequena produção podem minimizar a importância dessas economias e estão sendo determinantes para a manutenção da produção em pequena escala na região Sul do país, no curto prazo. / The main objective of this paper is to estimate a translog cost function for the soybean production activity in Brazil, to infer about the existence of scale economies in the sector. We use cross-section data obtained through a field research undertake during the period of September to December 2004, in a sample of 218 soybean-producing units in the main producer states in Brazil. The paper also addresses a socio-economic characterization of the surveyed units and analyses substitution possibilities between inputs. The sample reflects regional detail of production structure, with smaller producers concentrated in Southern Brazil and larger producers concentrate in the Center-West region. The elasticities of derived demand showed complementary relation between labor and capital. The Allen partial elasticities of substitution show substitution between most of the production inputs. Capital and labor are complements and chemical and labor are substitutes. In terms of Morishima elasticity of substitution capital and labor are complements when capital price varies and they are substitutes when labor price varies. The economies of scale estimates point to an optimal scale of production around 12 thousand ton that could be produced in an area with approximately 4,000 hectares. The results suggest that the presence of scale economies could be determining a new production structure for the sector in Brazil. And finally, the evidence found also suggests that some aspects of the small production system work to reduce the importance of these scale economies, and are determinant to keep the small-scale operations in the traditional regions in the short run.

Swedish local governments participate in different forms of intermunicipal cooperation in particular policy fields to achieve benefits of scale. This is often thought to improve efficiency and/or facilitate recruitment of experts and other competent personnel, aspects which are considered deficient in many municipalities as a consequence of demographical changes. Intermunicipal cooperation has become a widely used measure to face these challenges.However, there is little empirical evidence supporting that benefits of scale are realized – and the many forms of cooperation municipalities participate in is considered to affect local governments’ democratic anchorage negatively due to the principal-agent problem that arises. In this essay the effects of intermunicipal cooperation have been studied in an explorative way, with both quantitative and qualitative methods. Firstly, the effects on efficiency and need of additional personnel are examined with descriptive statistics from local government environmental inspection (food safety). Secondly, interviews have been conducted with local politicians and local government head officials exploring how the democratic deficit arising from intermunicipal cooperation is perceived from a transaction cost perspective. The interviewees represent a total of four municipalities (medium or small sized), two of which engage in a joint committee in local government environmental authority (which includes food control), the other two engage in a joint administration in the same policy field.The findings from the descriptive statistical analysis does not give solid evidence of improved efficiency or improved organizational competencies. However, the interviewees percieve these aspects as improved by intermunicipal cooperation. The findings from the qualitative approach is that the democratic deficit is perceived as problematic by the local politicians, but that several circumstances influence how problematic it really is. If the municipality needs cooperation to function, and the cooperation delivers satisfactory service, the principal-agent problem is more likely to be tolerated by the principal i.e. the citizens. Other factors seem to matter as well, factors such as: which policy field the cooperation is conducted, if the service is kept in the municipality’s vicinity, and if there is trust between the cooperating municipalities.