engleski

Cost Function and Cost Efficiency in Croatian Agriculture

In this paper Croatian agriculture is analyzed on a company level. Based on the microeconomic theory a theoretical cost function is deducted from Cobb-Douglas production function. The empirical microeconomic analysis will be used to determine the efficiency of each subsector of Croatian agriculture which would make the basis for deduction of the minimum cost function. Afterwards, an empirical econometric analysis was made to determine how far is the actual cost function from the optimal cost function. These findings will enable showing how profitability in Croatian agriculture could be improved using quality cost management. Dataset contains all Croatian companies in agriculture, forestry and fishing from 2008 – 2014 with 301 data series by FINA.

Conditional demand for inputs, Cost function, Croatian agriculture, Efficiency

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