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Capital as a Factor of Production in OECD Agriculture: Measurement and Data

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  • Ball, V. Eldon
  • Lindamood, W.A.
  • Nehring, Richard F.
  • Mesonada, Carlos San Juan

Abstract

This paper provides a farm sector comparison of levels of capital input for fourteen OECD countries for the period 1973-2002. The starting point for construction of a measure of capital input is the measurement of capital stock. Estimates of depreciable capital are derived by representing capital stock at each point of time as a weighted sum of past investments. The weights correspond to the relative efficiencies of capital goods of different ages, so that the weighted components of capital stock have the same efficiency. Estimates of the stock of land are derived from balance sheet data. We convert estimates of capital stock into estimates of capital service flows by means of capital rental prices. Comparisons of levels of capital input among countries require data on relative prices of capital input. We obtain relative price levels for capital input via relative investment goods prices, taking into account the flow of capital input per unit of capital stock in each country.

Suggested Citation

  • Ball, V. Eldon & Lindamood, W.A. & Nehring, Richard F. & Mesonada, Carlos San Juan, 2006. "Capital as a Factor of Production in OECD Agriculture: Measurement and Data," 2006 Annual meeting, July 23-26, Long Beach, CA 21315, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21315
    DOI: 10.22004/ag.econ.21315
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    1. Raymond B. Palmquist, 1989. "Land as a Differentiated Factor of Production: A Hedonic Model and Its Implications for Welfare Measurement," Land Economics, University of Wisconsin Press, vol. 65(1), pages 23-28.
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    4. V. Eldon Ball & Jean-Pierre Butault & Carlos San Juan Mesonada, 2004. "Measuring Real Capital Input in OECD Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 52(3), pages 351-370, November.
    5. V. Ball & Jean-Christophe Bureau & Jean-Pierre Butault & Richard Nehring, 2001. "Levels of Farm Sector Productivity: An International Comparison," Journal of Productivity Analysis, Springer, vol. 15(1), pages 5-29, January.
    6. Frederick V. Waugh, 1928. "Quality Factors Influencing Vegetable Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 10(2), pages 185-196.
    7. V.E. Ball & J.C. Bureau & J.P. Butault & H.P. Witzke, 1993. "The stock of capital in European Community agriculture," Post-Print hal-01072680, HAL.
    8. Zvi Griliches, 1961. "Hedonic Price Indexes for Automobiles: An Econometric of Quality Change," NBER Chapters, in: The Price Statistics of the Federal Goverment, pages 173-196, National Bureau of Economic Research, Inc.
    9. John B. Penson & Dean W. Hughes & Glenn L. Nelson, 1977. "Measurement of Capacity Depreciation Based on Engineering Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(2), pages 321-329.
    10. Ball, V Eldon, et al, 1993. "The Stock of Capital in European Community Agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 20(4), pages 437-450.
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    Cited by:

    1. Ball, V.E. & Färe, R. & Grosskopf, S. & Margaritis, D., 2015. "The role of energy productivity in U.S. agriculture," Energy Economics, Elsevier, vol. 49(C), pages 460-471.
    2. Qushim, Berdikul & Gillespie, Jeffrey & McMillin, Kenneth, 2014. "Productivity And Efficiency Of Southeastern U.S. Meat Goat Farms," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170352, Agricultural and Applied Economics Association.
    3. Miroslav Svatoš & Luboš Smutka & Richard Selby, 2014. "Capital Stock Value Development in Relation to the New EU Countries' Agricultural Sector Development," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 62(6), pages 1437-1450.
    4. B. Qushim & J. Gillespie & K. Paudel & K. Mcmillin, 2016. "Technical and scale efficiencies of meat goat farms in the USA," Applied Economics, Taylor & Francis Journals, vol. 48(7), pages 608-620, February.
    5. Qushim, Berdikul & Bhandari, Basu & Gillespie, Jeffrey & Scaglia, Guillermo, 2017. "Grass-Fed Beef Enterprise Efficiency Analysis in the U.S," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252735, Southern Agricultural Economics Association.
    6. repec:ags:aaea22:335490 is not listed on IDEAS
    7. Njuki, Eric, 2020. "Examining the effects of federal crop insurance premium subsidies on allocative and technical inefficiency in the U.S. cornbelt," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304285, Agricultural and Applied Economics Association.
    8. Eric Njuki & Boris E Bravo-Ureta & Christopher J O’Donnell, 2018. "A new look at the decomposition of agricultural productivity growth incorporating weather effects," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-21, February.
    9. Nehring, Richard F. & McFadden, Jonathan & Ball, Virgil Eldon & Ghosh, Nilabja & Marquardt, David & Reinsch, Thomas, 2017. "Constructing Rigorous Relative Price Indices of Agricultural Land in the Developed and Developing World," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258117, Agricultural and Applied Economics Association.
    10. Yu Sheng & V. Eldon Ball & Kenneth Erickson & Carlos San Juan Mesonada, 2022. "Cross-country agricultural TFP convergence and capital deepening: evidence for induced innovation from 17 OECD countries," Journal of Productivity Analysis, Springer, vol. 58(2), pages 185-202, December.
    11. Nehring, Richard F. & Gillespie, Jeffrey M. & Harris, Michael & Erickson, Kenneth W., 2018. "Economic Efficiency of U.S. Organic Versus Conventional Dairy Farms: Evidence from," 2018 Annual Meeting, August 5-7, Washington, D.C. 273793, Agricultural and Applied Economics Association.
    12. Nehring, Richard F. & Gillespie, Jeffrey M. & Hallahan, Charles B. & Sauer, Johannes, 2012. "Economic Efficiency of U.S. Organic Versus Conventional Dairy Farms: Evidence from 2005 and 2010," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119769, Southern Agricultural Economics Association.
    13. Nehring, Richard & Gillespie, Jeffrey & Hallahan, Charles & Sauer, Johannes, 2015. "The Economics and Productivity of Organic versus Non-organic U.S. Dairy Farms," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196805, Southern Agricultural Economics Association.
    14. Gillespie, Jeffrey M. & Nehring, Richard F. & Hallahan, Charles B. & Morrison Paul, Catherine J. & Sandretto, Carmen L., 2008. "Economics and Productivity of Organic versus Non-organic Dairy Farms in the United States," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44415, European Association of Agricultural Economists.
    15. Andersen, Matthew A. & Alston, Julian M. & Pardey, Philip G., 2009. "Capital Service Flows: Concepts and Comparisons of Alternative Measures in U.S. Agriculture," Staff Papers 50098, University of Minnesota, Department of Applied Economics.
    16. Pietola, Kyösti & Myyrä, Sami & Heikkilä, Anna-Maija, 2011. "The Penetration of Financial Instability in Agricultural Credit and Leveraging," Factor Markets Working Papers 97, Centre for European Policy Studies.
    17. Robert G. Chambers & Yu Sheng, "undated". "Genetically Modified Organisms and Agricultural Productivity," Working Papers 3, International Society for Efficiency and Productivity Analysis.
    18. Nehring, Richard & Sauer, Johannes & Gillespie, Jeffrey & Hallahan, Charlie, 2016. "United States and European Union Dairy Farms: Where Is the Competitive Edge?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(B), pages 1-22, August.
    19. Wang, Sun Ling & Schimmelpfennig, David & Ball, Eldon, 2013. "Embodied-Technical Change of Farm Tractors in U.S. Agricultural Productivity Analysis: What Does Hedonic Price Tell Us?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151211, Agricultural and Applied Economics Association.
    20. Wang, Sun Ling & Nehring, Richard & Mosheim, Roberto & Njuki, Eric, 2024. "Measurement of Output, Inputs, and Total Factor Productivity in U.S. Agricultural Productivity Accounts," Technical Bulletins 344773, United States Department of Agriculture, Economic Research Service.
    21. Qushim, Berdikul & Gillespie, Jeffrey & McMillin, Kenneth, 2015. "Efficiency Analysis of Southeastern U.S. Meat Goat Production," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196818, Southern Agricultural Economics Association.
    22. Sheng, Yu & Tian, Xiaohui & Qiao, Weiqing & Peng, Chao, 2020. "Measuring agricultural total factor productivity in China: pattern and drivers over the period of 1978-2016," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(1), January.
    23. Kevin J. Fox & Yu Sheng & Tom Jackson & Shiji Zhao & Dandan Zhang, 2017. "Measuring Output, Input and Total Factor Productivity in Australian Agriculture: An Industry-Level Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63, pages 169-193, February.
    24. Virgil Eldon Ball & Carlos San Juan Mesonada & Carlos Sunyer Manteiga & Kennet Ericson & Yu Sheng, 2023. "Technology catch‐up in agriculture among advanced economies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(1), pages 18-37, January.

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