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The Importance Of Produced Means Of Production In Uk Agriculture

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  • A. Ozanne

Abstract

Neoclassical production theory assumes that outputs and inputs can be separated into two distinct commodity groups. However, this fails to take account of the presence of produced means of production in agriculture which undermine the ceteris paribus assumption on which partial equilibrium analysis is based‐a criticism identified as part of the broader Sraffian critique of neoclassical economics. A simulation exercise designed to investigate the importance of produced inputs in UK agriculture found evidence of perverse aggregate supply response resulting from the use of feedgrain, an output from the cereal sector, as a produced input in the livestock sectors. This empirical result lends some support to the Sraffian analysis; however, it is suggested that the perversity arises from failure to take account of the produced input, and that computing ‘net output’

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  • A. Ozanne, 1993. "The Importance Of Produced Means Of Production In Uk Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 205-217, May.
    • Handle: RePEc:bla:jageco:v:44:y:1993:i:2:p:205-217
    DOI: 10.1111/j.1477-9552.1993.tb00266.x
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    References listed on IDEAS

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    1. Steedman, Ian, 1988. "Sraffian Interdependence and Partial Equilibrium Analysis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 12(1), pages 85-95, March.
    2. Steedman, Ian, 1985. "On Input 'Demand Curves.'," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 9(2), pages 165-172, June.
    3. D. V. Gordon, 1990. "Negative Supply Response And The Role Of Price Expectations In A Two‐Period Model Of Cattle Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 184-195, May.
    4. Burton, M.P., 1987. "An Econometric Model of the UK Agricultural Sector," Manchester Working Papers in Agricultural Economics 232795, University of Manchester, School of Economics, Agricultural Economics Department.
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    1. Yougesh Khatri & Colin Thirtle, 1996. "Supply And Demand Functions For Uk Agriculture: Biases Of Technical Change And The Returns To Public R&D," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 338-354, January.

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