This study develops a micro econometric model of specialised dairy farms in Moscow Region using panel data over the period 1995-1998. The model is used to analyse the role of input and output subsidies in the on-farm decision making. Theoretical conditions for short term profit maximization and...

‘Productivity and efficiency growth enhances competitiveness’. Similarly formulated statements are common in the literature on the economic performance of firms, industries and nations. This conventional perception in the economic literature, originating from trade and growth theory models,...