EconPapers    
Economics at your fingertips  
 

Synthesis Report on the Impact of Capital Use

Martin Petrick () and Mathias Kloss ()

No 169, Factor Markets Working Papers from Centre for European Policy Studies

Abstract: This paper examines the drivers of productivity in EU agriculture from a factor markets perspective. Using econometrically estimated production elasticities and shadow prices of factors for a set of eight EU member states, we focus on field crop farms represented in the FADN database for the years 2002-08. As it turned out that output reacts most elastically to materials input, we investigate this factor further and find different rationing regimes represented in different member states. Marginal return on materials is low in Denmark and West Germany, but significantly above typical market interest rates in East Germany, Italy and Spain. In the latter countries and in Denmark it also increased towards the end of the observed period. This finding is consistent with a perception of tightening funding access, possibly induced or reinforced by the unfolding financial crisis. Marginal returns to land, labour and fixed capital are generally low. We conclude that the functioning of factor markets plays a crucial role for productivity growth, but that factor market operations display considerable heterogeneity across EU member states.

Pages: 17 pages
Date: 2013-08
New Economics Papers: this item is included in nep-agr, nep-eff and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.factormarkets.eu/system/files/FM%20WP57 ... 0capital%20use-2.pdf
Our link check indicates that this URL is bad, the error code is: 503 Service unavailable

Related works:
Working Paper: Synthesis Report on the Impact of Capital Use (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eps:fmwppr:169

Access Statistics for this paper

More papers in Factor Markets Working Papers from Centre for European Policy Studies Contact information at EDIRC.
Bibliographic data for series maintained by Eleni Kaditi ().

 
Page updated 2021-01-15
Handle: RePEc:eps:fmwppr:169