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A Three Factor Agricultural Production Function: The Case of Canada

Author

Listed:
  • Cristina Echevarria

    (University of Saskatchewan)

Abstract

This paper estimates a constant returns to scale agricultural production function of the three basic factors of production. Such a function is a useful tool for macroeconomic, growth, and development studies. It uses the shares approach that Solow used in 1957 and very disaggregated Canadian data. The main results of this paper are that first, in Canada, agriculture is less labour intensive than both services and industry, but capital intensity is similar in the three sectors. Second, the share of land in value added is estimated to be 16%. Third, total factor productivity growth in Canada has been roughly the same--0.3%--in agriculture and manufactures over the period 1971-91.

Suggested Citation

  • Cristina Echevarria, 2005. "A Three Factor Agricultural Production Function: The Case of Canada," Microeconomics 0510011, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpmi:0510011
    Note: Type of Document - pdf; pages: 13
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    References listed on IDEAS

    as
    1. Bernard, Andrew B & Jones, Charles I, 1996. "Productivity across Industries and Countries: Time Series Theory and Evidence," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 135-146, February.
    2. repec:hoo:wpaper:e-92-3 is not listed on IDEAS
    3. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
    4. Echevarria, Cristina, 1997. "Changes in Sectoral Composition Associated with Economic Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(2), pages 431-452, May.
    5. Stockman, Alan C., 1988. "Sectoral and national aggregate disturbances to industrial output in seven European countries," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 387-409.
    6. Costello, Donna M, 1993. "A Cross-Country, Cross-Industry Comparison of Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 207-222, April.
    7. John Laitner, 2000. "Structural Change and Economic Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(3), pages 545-561.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    agricultural economics; agriculture production function; macroeconomics;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D2 - Microeconomics - - Production and Organizations
    • D3 - Microeconomics - - Distribution
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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