TY - JOUR
T1 - Comparisons of Capital Input in OECD Agriculture, 1973-2011
AU - Ball, V. Eldon
AU - Cahill, Sean
AU - Mesonada, Carlos San Juan
AU - Nehring, Richard
AU - Sheng, Yu
PY - 2016
Y1 - 2016
N2 - This paper provides a farm sector comparison of relative levels of capital input for 17 OECD countries for the period 1973-2011, with an explicit distinction between land and depreciable assets. Methodologically, we adopt the constant efficiency model to derive capital services from capital stocks and construct the purchasing power parity between countries for crosscountry comparison. Our estimates show that, after accounting for cyclical fluctuation in the relative price of capital inputs, fifteen of the sixteen countries in the comparison had higher levels of capital input relative to the United States in 2011 than at the beginning of the sample period in 1973. Moreover, our analysis shows that increases in relative capital use on farms in OECD countries were accompanied by change in the structure of the capital input, away from land and towards depreciable capital items.
AB - This paper provides a farm sector comparison of relative levels of capital input for 17 OECD countries for the period 1973-2011, with an explicit distinction between land and depreciable assets. Methodologically, we adopt the constant efficiency model to derive capital services from capital stocks and construct the purchasing power parity between countries for crosscountry comparison. Our estimates show that, after accounting for cyclical fluctuation in the relative price of capital inputs, fifteen of the sixteen countries in the comparison had higher levels of capital input relative to the United States in 2011 than at the beginning of the sample period in 1973. Moreover, our analysis shows that increases in relative capital use on farms in OECD countries were accompanied by change in the structure of the capital input, away from land and towards depreciable capital items.
KW - Real capital input
KW - Purchasing power parity
KW - Perpetual inventory method
KW - OECD agriculture
UR - https://refpress.org/archives/#
M3 - Article
SN - 1923-7529
VL - 6
SP - 25
EP - 48
JO - Review of Economics and Finance
JF - Review of Economics and Finance
ER -