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CAPITAL CONSUMPTION AND NET CAPITAL FORMATION IN U.K. AGRICULTURE ‐ BUILDINGS AND WORKS
Author(s) -
Hill Berkeley
Publication year - 1972
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1972.tb01447.x
Subject(s) - capital formation , consumption (sociology) , economics , capital (architecture) , asset (computer security) , national accounts , productivity , capital intensity , physical capital , capital asset , agricultural economics , net worth , position (finance) , agriculture , fixed capital , econometrics , financial capital , macroeconomics , finance , human capital , geography , market economy , computer science , debt , social science , computer security , archaeology , sociology
No explicit estimates are published of U.K. agriculture's consumption of capital in the form of buildings and works or of net capital formation in these assets‐a surprising gap in national statistics. This paper presents such estimates produced by using a range of assumed asset lives and an inter‐war gross capital formation level postulated from survey data. The patterns of capital consumption and net capital formation since 1948 are traced, and changes coinciding with the introduction of the Farm Improvement Scheme noted. Estimates for 1969 are compared with other items in the agricultural industry's accoounts for that year, as shown in the White Paper on the Annual Review and Determination of Guarantees. Discussion is focused on the choice of appropriate asset lives to build into estimates of aggregate consumption for the purpose of estimating the industry's real income. A possible role for net capital formation estimates in the analysis of agriculture's productivity is suggested. A postscript gives the latest position in a move to more explicit official statistics for agriculture's capital in the form of fixed assets.