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Measures of Fixed Capital in Agriculture

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  • Butzer, Rita
  • Mundlak, Yair
  • Larson, Donald F.

Abstract

Capital is a fundamental component of agricultural production, and the accumulation of capital is key to growth in agriculture and the process of development. Unfortunately, cross-country data sets on agricultural fixed capital are rare. Using a common methodology that allows comparisons across countries, as well as over time, we introduce a data series on fixed capital in agriculture, based on national accounts data. The fixed capital measure differs remarkably from the FAO data series on tractors which has been widely utilized as a proxy for agricultural fixed capital. We construct comparable measures of capital in livestock and treestock. We examine the evolution of the capital stocks from 1970 to 2000, paying particular attention to the changing composition of agricultural capital, as well as differences in the accumulation of capital for highincome and middle- and lower-income countries. Using our capital measures in agricultural productivity analyses, the data yield estimated input elasticities substantially different from those found previously in the literature. We show explicitly that this is due to the improved data set on agricultural capital stocks, as well as the methodology used in the study.

Suggested Citation

  • Butzer, Rita & Mundlak, Yair & Larson, Donald F., 2010. "Measures of Fixed Capital in Agriculture," Discussion Papers 290011, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  • Handle: RePEc:ags:huaedp:290011
    DOI: 10.22004/ag.econ.290011
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    1. Mundlak, Yair & Butzer, Rita & Larson, Donald F., 2012. "Heterogeneous technology and panel data: The case of the agricultural production function," Journal of Development Economics, Elsevier, vol. 99(1), pages 139-149.
    2. Kym Anderson & Markus Bruckner, 2012. "Distortions to Agriculture and Economic Growth in Sub-Saharan Africa," Departmental Working Papers 2012-06, The Australian National University, Arndt-Corden Department of Economics.
    3. Julian M. Alston & Philip G. Pardey, 2014. "Agriculture in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 121-146, Winter.
    4. Burcu Ilter & Burcu Selin Yilmaz, 2016. "Understanding Determinants of Organic Food Consumption: Turkey Example," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(4), pages 372-389, October.
    5. Fuglie, Keith, 2015. "Accounting for growth in global agriculture," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 4(3), pages 1-34, December.
    6. Asiedu, Edward & Sadekla, Sylvester S. & Bokpin, Godfred A., 2020. "Aid to Africa’s agriculture towards building physical capital: Empirical evidence and implications for post-COVID-19 food insecurity," World Development Perspectives, Elsevier, vol. 20(C).
    7. Ehis T. Omoluabi & Olufemi A. Akintunde & Florence T. & Haruna T.H., 2016. "Capital Investment Decisions on Entrepreneurial Agricultural Projects in Kwara State," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(4), pages 358-371, October.
    8. Helfand, Steven M. & Magalhaes, Marcelo M. & Rada, Nicholas E., 2015. "Brazil's Agricultural Total Factor Productivity Growth by Farm Size," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 204875, Agricultural and Applied Economics Association.
    9. Zheng, Yu & Alexandre, Gohin, 2018. "Agricultural productivity and price volatility in France: a dynamic stochastic partial equilibrium approach," 2018 Annual Meeting, August 5-7, Washington, D.C. 274354, Agricultural and Applied Economics Association.
    10. Helfand, Steven M. & Magalhaes, Marcelo M. & Rada, Nicholas E., 2015. "Brazil's Agricultural Total Factor Productivity Growth by Farm Size," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 204875, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    11. Néstor A. Le Clech & Carmen Fillat Castejón, 2017. "Productivity, efficiency and technical change in world agriculture: a färe-primont index approach," Documentos de Trabajo dt2017-09, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    12. Ehis T. Omoluabi & Olufemi A. Akintunde & T. Florence & T.H. Haruna, 2016. "Capital Investment Decisions on Entrepreneurial Agricultural Projects in Kwara State," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(5), pages 141-154, OCTOBER.

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