MEASURING THE PRODUCTIVITY OF CAPITAL IN UNITED STATES AGRICULTURE

The agricultural sector has operated in a period of high real interest rates for over half a decade. Some are concerned that this has limited capital availability and stagnated the historic capital for labor substitution occurring in the sector. This study proposes new procedures for estimating the aggregate production function of United States agriculture. Improvements include incorporation of total returns and revised measures of both durable and nondurable capital inputs. Results indicate increasing capital productivity has occurred, but encouraging further capital substitution may not benefit agricultural producers.


Issue Date:
1986-12
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/29784
PURL Identifier:
http://purl.umn.edu/29784
Published in:
Southern Journal of Agricultural Economics, Volume 18, Number 2
Page range:
187-195
Total Pages:
9




 Record created 2017-04-01, last modified 2018-01-22

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