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A three-factor agricultural production function: The case of Canada

Author

Listed:
  • Cristina Echevarria

    (University of Saskatoon)

Abstract

This paper estimates a constant returns to scale agricultural production function with just threeinputs: land, labour and capital -the basic factors of production. It uses the shares approach thatSolow used in 1957 and very disaggregated Canadian data. A constant returns to scale function ofthe three basic factors of production is a useful tool for macroeconomic, and growth anddevelopment studies. The main results of this paper are that, first, in Canada agriculture is lesslabour intensive than both services and industry, but capital intensity is similar in the threesectors. Second, the share of land in value added is estimated to be 16% Third, total factorproductivity growth in Canada has been roughly the same -0'3%- in agriculture and manufacturesover the period 1971-91.

Suggested Citation

  • Cristina Echevarria, 1997. "A three-factor agricultural production function: The case of Canada," Working Papers. Serie AD 1997-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:1997-12
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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1997-12.pdf
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    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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