SPATIAL TESTS FOR EDGE-EFFECT EXTERNALITIES AND EXTERNAL SCALE ECONOMIES IN CALIFORNIA AGRICULTURE
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This paper test the hypothesis that conflicts along borders shared with conventional farms and potential external economies of scale have led to clustering of certified organic farms, using 1997 data from Yolo County, CA. Using a variety of landscape and areal statistics and a spatially autoregressive limited dependent variable model, we find significant evidence of spatial clustering related to both factors.