IDEAS home Printed from https://ideas.repec.org/p/cem/doctra/811.html
   My bibliography  Save this paper

Knowledge, prices and factor demand: Fertilizers in Argentine Agriculture

Author

Listed:
  • Marcos Gallacher

Abstract

El objetivo de este trabajo es analizar la importancia de insumos asociados al conocimiento (“cambio tecnológico”) y precios relativos como determinantes de la demanda de factores en la agricultura argentina. Motiva este trabajo el incremento significativo (x 15) en la demanda de fertilizantes ocurrido en el período 1990-2019. Conocer los factores responsables de la demanda de fertilizantes resulta importante ya que estos insumos explican una parte significativa del producto agrícola en países con sectores agropecuarios altamente productivos, como es el caso de los EEUU y otros. En adición a lo anterior, la creciente preocupación por la sostenibilidad en el tiempo de los sistemas agrícolas enfatiza la necesidad de comprender la economía del uso de fertilizantes pues estos insumos, si bien contribuyen a la producción sostenible, (aumento de producción de grano y también de materia vegetal a ser incorporada al suelo) también generan inquietudes como resultado del consumo de energía necesaria para su producción y la posible contaminación de napas subterráneas que su uso puede generar. Los resultados muestran que en período 1990-2019 el incremento en la demanda de fertilizantes resultó no solo de bajas en el precio relativo fertilizante/grano, sino también del aumento de la productividad marginal del fertilizante. Esto sugiere la creciente importancia de “insumos asociados al conocimiento” en el proceso productivo. / The objective of this paper is to analyze the relative importance of knowledge inputs (or “technical change”) and input prices in explaining factor demand in Argentine agriculture. Motivation for the paper is the fifteen-fold increase in fertilizer demand observed in Argentina in the 1990-2019 period. Understanding the factors affecting fertilizer use is important, as this input accounts for a significant portion of output in countries with a highly productive agricultural sector, such as the U.S. and others. In addition, increased concern for the sustainability of agricultural systems requires understanding of the economics of fertilizer use, as fertilizers can both contribute to sustainable production (via increased production not only of marketable products, but also dry matter to be incorporated to the soil), but at the same time raise issues, in particular, related to groundwater contamination and energy (in the form of fertilizer) used in the agricultural sector. Results show that in the 1990 – 2019 period increase in fertilizer demand was a result not only of a fall in the fertilizer/crop price ratio, but also on increased marginal productivity of the fertilizer input. It is suggested that this is a result of the increased importance of “knowledge inputs” in the production process.

Suggested Citation

  • Marcos Gallacher, 2021. "Knowledge, prices and factor demand: Fertilizers in Argentine Agriculture," CEMA Working Papers: Serie Documentos de Trabajo. 811, Universidad del CEMA.
    • Handle: RePEc:cem:doctra:811
    as

    Download full text from publisher

    File URL: https://ucema.edu.ar/publicaciones/download/documentos/811.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Huffman, Wallace E., 2001. "Human capital: Education and agriculture," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 7, pages 333-381, Elsevier.
    2. Beckman, Jayson & Ivanic, Maros & Jelliffe, Jeremy L & Baquedano, Felix G & Scott, Sara G, 2020. "Economic and Food Security Impacts of Agricultural Input Reduction Under the European Union Green Deal’s Farm to Fork and Biodiversity Strategies," Economic Brief 327231, United States Department of Agriculture, Economic Research Service.
    3. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    4. Anderson, Jock R. & Dillon, John L. & Hardaker, Brian, 1977. "Agricultural Decision Analysis," Monographs: Applied Economics, AgEcon Search, number 288652, November.
    5. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    6. Theodore W. Schultz, 1956. "Reflections on Agricultural Production, Output and Supply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 38(3), pages 748-762.
    7. Wallace E. Huffman, 1977. "Allocative Efficiency: The Role of Human Capital," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(1), pages 59-79.
    8. Welch, F, 1970. "Education in Production," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 35-59, Jan.-Feb..
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marcos Gallacher, 2021. "Knowledge, prices and factor demand: Fertilizers in Argentine Agriculture," Asociación Argentina de Economía Política: Working Papers 4474, Asociación Argentina de Economía Política.
    2. Gallacher, M. & Lema, D., 2018. "Returns to Managerial Ability and Technical Efficiency in Argentina Dairy Farms," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277323, International Association of Agricultural Economists.
    3. Marcos Gallacher, 2011. "Returns to Managerial Ability: Dairy Farms in Argentina," CEMA Working Papers: Serie Documentos de Trabajo. 478, Universidad del CEMA.
    4. Marcos Gallacher, 2008. "The impact of human capital on firm-level input use: Argentine agriculture," CEMA Working Papers: Serie Documentos de Trabajo. 380, Universidad del CEMA.
    5. Tao Yang, Dennis, 2004. "Education and allocative efficiency: household income growth during rural reforms in China," Journal of Development Economics, Elsevier, vol. 74(1), pages 137-162, June.
    6. Huffman, Wallace E., 2001. "Human capital: Education and agriculture," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 7, pages 333-381, Elsevier.
    7. Chen, Yanni & Huffman, Wallace E., 2009. "An Economic Analysis of the Impact of Food Prices and Other Factors on Adult Lifestyles: Choices of Physical Activity and Healthy Weight," 2009 Conference, August 16-22, 2009, Beijing, China 49987, International Association of Agricultural Economists.
    8. Yang, Dennis Tao & An, Mark Yuying, 2002. "Human capital, entrepreneurship, and farm household earnings," Journal of Development Economics, Elsevier, vol. 68(1), pages 65-88, June.
    9. Tegene, Abebayehu & Effland, Anne & Ballenger, Nicole & Norton, George W. & Essel, Albert E. & Larson, Gerald & Clarke, Winfrey, 2002. "Investing in People: Assessing the Economic Benefits of 1890 Institutions," Miscellaneous Publications 33548, United States Department of Agriculture, Economic Research Service.
    10. Wallace E. Huffman, 2020. "Human Capital and Adoption of Innovations: Policy Implications," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(1), pages 92-99, March.
    11. Gurgand, Marc, 2003. "Farmer education and the weather: evidence from Taiwan (1976-1992)," Journal of Development Economics, Elsevier, vol. 71(1), pages 51-70, June.
    12. Huffman, Wallace E., 2009. "Does Information Change Behavior?," Working Papers 55938, Iowa State University, Department of Economics.
    13. repec:eee:labchp:v:1:y:1986:i:c:p:357-386 is not listed on IDEAS
    14. Ekanayake, S.A.B. & Jayasuriya, Sisira, 1989. "Change, Adjustment And The Role Of Specific Experience: Evidence From Sri Lankan Rice Farming," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(2), pages 1-13, August.
    15. Hildreth, R.J. & Bentley, Orville G. & Johnson, Glenn L. & Tweeten, Luther & Mellor, John W. & Bromley, Daniel W. & Pope, Rulon D. & Leman, Christopher K. & Paarlberg, Robert L. & King, R.P. & Sonka, , 1985. "Agriculture and Rural Areas Approaching the Twenty-first Century: Challenges for Agricultural Economics," 1985 Annual Meeting, August 4-7, Ames, Iowa 278707, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Rahm, Michael Robert, 1980. "An economic analysis of the corn production efficiency of Iowa farm firms," ISU General Staff Papers 198001010800008119, Iowa State University, Department of Economics.
    17. Henrique Batista de Barros, Pedro & Henrique Leite de Castro , Gustavo & Menezes-Filho, Naercio, 2022. "The human capital effect on productivity and agricultural frontier expansion in Brazil," TD NEREUS 6-2022, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    18. Jean‐Paul Chavas & Céline Nauges, 2020. "Uncertainty, Learning, and Technology Adoption in Agriculture," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(1), pages 42-53, March.
    19. Aritri Chakravarty, 2022. "Impact of Information on Technical Efficiency of Agricultural Production in India," BASE University Working Papers 14/2022, BASE University, Bengaluru, India.
    20. Parman, John, 2012. "Good schools make good neighbors: Human capital spillovers in early 20th century agriculture," Explorations in Economic History, Elsevier, vol. 49(3), pages 316-334.
    21. Serrao, Amilcar & Coelho, Luis, 2004. "Cumulative Prospect Theory: A Study Of The Farmers' Decision Behavior In The Alentejo Dryland Region Of Portugal," 2004 Annual meeting, August 1-4, Denver, CO 20245, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cem:doctra:811. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valeria Dowding (email available below). General contact details of provider: https://edirc.repec.org/data/cemaaar.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.