Hostname: page-component-586b7cd67f-vdxz6 Total loading time: 0 Render date: 2024-11-26T06:04:16.257Z Has data issue: false hasContentIssue false
  • English
  • Français

Measuring the Productivity of Capital in United States Agriculture

Published online by Cambridge University Press:  05 September 2016

Cole R. Gustafson
Cole R. Gustafson*
Affiliation:
North Dakota State University, Fargo, North Dakota
Get access Rights & Permissions [Opens in a new window]

Abstract

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.

Keywords

productivityaccountingcapital-labor substitutionagricultural financeinterest rates
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 18 , Issue 2 , December 1986 , pp. 187 - 196
Copyright
Copyright © Southern Agricultural Economics Association 1986

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

American Agricultural Economics Association Task Force on Measuring Agricultural Productivity. Measurement of U. S. Agricultural Productivity: A Review of Current Statistics and Proposals for Change. U. S. Department of Agriculture, ESCS Technical Bulletin No. 16l4; February, 1980.Google Scholar
Ball, V. Eldon. “Output, Input, and Productivity Measurement in U. S. Agriculture, 1948-79 “ Amer. J. Agr. Econ., 67,3(1985):475–486.Google Scholar
Binswanger, H.P.. “A Cost Function Approach to the Measurement of Elasticities of Factor Demand and Elasticities of Substitution.” Amer. J. Agr. Econ., 56,2(1974):377–386.Google Scholar
Council of Economic Advisors. Economic Report to the President. Washington D.C.: U. S. Government Printing Office, February, 1986.Google Scholar
Doll, J. P. “On Exact Multicollinearity and the Estimation of the Cobb-Douglas Production Function.” Amer. J. Agr. Econ., 56,3(1974):556–563.CrossRefGoogle Scholar
Doll, J. P. and Widdows, R.. Inputing Returns to Production Assets in 10 U. S. Farm Production Regions. National Economics Division, Economic Research Service, U. S. Department of Agriculture. Staff Report No. AGES 820703; July, 1982.Google Scholar
Drynan, R. G. and Hodge, I. D.. “The Value of Unrealized Farmland Capital Gains: Comment.” Amer. J. Agr. Econ., 63,2(1981):281–282.Google Scholar
Dunford, R. W. “The Value of Unrealized Farm Land Capital Gains: Comment.” Amer. J. Agr. Econ., 62,2(1980):260–262.CrossRefGoogle Scholar
Griliches, Z. “Productivity, R & D, and Basic Research at the Firm Level in the 1970's.” Amer. Econ. Rev., 76(1986):141–154.Google Scholar
Griliches, Z. “Research Expenditures, Education, and the Aggregate Agricultural Production Function.” Amer. Econ. Rev., 54(1964):961–974.Google Scholar
Harrington, D. H. “Cost and Returns: Economic and Accounting Concepts.” Agr. Econ. Res., 35(1983):1–8.Google Scholar
Hayami, Y. and Ruttan, V. W.. “Agricultural Productivity Differences Among Countries.” Amer. Econ. Rev., 60(1970):895–911.Google Scholar
Heady, Earl O. and Dillon, John L.. Agricultural Production Functions, Iowa State University Press, Ames, Iowa; Chapters 1, 3, and, 14; 1961.Google Scholar
Hicks, J. R. Capital and Growth, Oxford University Press, New York; 1965.Google Scholar
Hoffman, G. and Gustafson, C.. “A New Approach to Estimating Agricultural Costs of Production.” Agr. Econ. Res., 35(1983):9–14.Google Scholar
Lu, Y. C. “Measuring Productivity Change in U. S. Agriculture.” So. J. Agr. Econ., 7,2(1975):69–74.Google Scholar
Melichar, E. “Capital Gains Versus Current Income in the Farming Sector.” Amer. J. Agr. Econ., 61,5(1979):1,085–1,092. Google Scholar
Penson, J. B. Jr., Hughes, D. W., and Nelson, G. L.. “Measurement of Capital Depreciation Based on Engineering Data.” Amer. J. Agr. Econ., 59,2(1977):321–329.Google Scholar
Plaxico, J. S. and Kletke, D. D.. “The Value of Unrealized Farmland Capital Gains.” Amer. J. Agr. Econ., 61,2(1979):327–330.Google Scholar
Plaxico, J. S. and Kletke, D. D.. “The Value of Unrealized Farmland Capital Gains: Reply.” Amer. J. Agr.Econ., 62,2(1980):263–264.Google Scholar
Plaxico, J. S. and Kletke, D. D.. “The Value of Unrealized Farmland Capital Gains: Reply.” Amer. J. Agr., 63, 2(1981):283–284.Google Scholar
Rosine, J. and Helmberger, P.. “A Neoclassical Analysis of the U. S. Farm Sector, 1948-1970.” Amer. J. Agr. Econ., 56,4(1974):717-729.Google Scholar
Ruttan, V. W. “Agricultural and Non-Agricultural Growth in Output Per Unit of Input.” J. Farm Econ., 39,5(1957):1,566–1,576.Google Scholar
Schuh, G. E. “The Exchange Rate and U. S. Agriculture.” Amer. J. Agr. Econ., 56,1(1974):1–13.Google Scholar
Shumway, C. R., Talpaz, H., and Beattie, B. R.. “The Factor Share Approach to Production Function ‘Estimation’: Actual or Estimated equilibrium Shaes?” Amer. J. Agr. Econ., 61, 3(1979):561–564.Google Scholar
Theil, H. Principles of Econometrics. New York, New York: John Wiley and Sons, Inc., 1971.Google Scholar
Tweeten, L. G. Farmland Pricing and Cash Flow in an Inflationary Economy. Agricultural Experiment Station Research Report P-811. Oklahoma State University; Stillwater, Oklahoma; June, 1981.Google Scholar
Tyner, F. H. and Tweeten, L. G.. (a). “A Methodology for Estimating Production Parameters.” J. Farm Econ., 47(1965):1,462–1,467.CrossRefGoogle Scholar
Tyner, F. H. and Tweeten, L. G.. (b). “Optimum Resource Allocation in U. S. Agriculture.” J. Farm Econ., 48(1966):613–631.CrossRefGoogle Scholar
U. S. Department of Agriculture. Agricultural Statistics. Washington, D.C.: U. S. Government Printing Office, various issues.Google Scholar
U. S. Department of Agriculture, Economic Research Service. Economic Indicators of the Farm-Sector: National Financial Summary, 1984. Washington, D.C.; 1986.Google Scholar
U. S. Department of Agriculture, Economics Statistics and Cooperative Service. Measurment of U. S. Agricultural Productivity: A Review of Current Statistics and Proposals for Change. Technical Bulleting No. 1614, Washington, D. C.:; February, 1980.Google Scholar
Weaver, R. D. “Multiple Input, Multiple Output Production Choices and Technology in the U. S. Wheat Region.” Amer. J. Agr. Econ., 65,1(1983):45–56.Google Scholar