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THE ECONOMIC SURPLUS OF AGRICULTURE IN THE UNITED KINGDOM *
Author(s) -
Wagstaff H. R.
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.tb01448.x
Subject(s) - economics , economic surplus , agriculture , equity (law) , buffer stock scheme , inflation (cosmology) , relative price , gross domestic income , distribution (mathematics) , agricultural economics , monetary economics , gross income , macroeconomics , market economy , ecology , mathematical analysis , physics , mathematics , tax reform , theoretical physics , political science , welfare , law , biology , state income tax
The economic surplus of an industry is defined as the difference between its real product, and the real income accruing to it. The surplus from U.K. agriculture measured at 1964/65–66/67 prices is estimated to have risen by about 20 million per year in recent years. The absorption of this surplus by other sectors is identified and an approximate indication is given of the equivalent surpluses and deficits of other industry groups. The economic surplus from agriculture is transferred principally through changes in relative prices, the necessity of which tends to create an unavoidable minimum rate of inflation. There is an international equivalent of these transfers of real income through price changes, but without the institutional constraints on the market which in the domestic economy preserve some measure of equity in the distribution of income.