Economies of scale and inefficiency in county extension councils: A case for consolidation?

Abstract

Current funding, mission, and organizational difficulties question the long-run survival of extension and the Land-Grant system. Consolidation of county extension offices is seen as a possible remedy for extension's problems. This paper estimates scale economies and inefficiencies in county extension offices in Kansas using parametric and nonparametric techniques. Large economies of scale and inefficiencies are found. Based on the empirical results, several simulations are performed to measure the short-run cost savings associated with consolidation. The results reveal that while all counties would experience significant savings from consolidating, rural and less populated counties would experience the greatest per unit savings. Copyright 2001 American Agricultural Economics Association.