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THE IMPORTANCE OF PRODUCED MEANS OF PRODUCTION IN UK AGRICULTURE
Author(s) -
Ozanne A.
Publication year - 1993
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.1477-9552.1993.tb00266.x
Subject(s) - ceteris paribus , economics , production (economics) , commodity , production theory , agriculture , microeconomics , general equilibrium theory , criticism , aggregate (composite) , partial equilibrium , neoclassical economics , econometrics , mathematical economics , market economy , art , ecology , materials science , literature , composite material , biology
Neoclassical production theory assumes that outputs and inputs can be separated into two distinct commodity groups. However, this fails to take account of the presence of produced means of production in agriculture which undermine the ceteris paribus assumption on which partial equilibrium analysis is based‐a criticism identified as part of the broader Sraffian critique of neoclassical economics. A simulation exercise designed to investigate the importance of produced inputs in UK agriculture found evidence of perverse aggregate supply response resulting from the use of feedgrain, an output from the cereal sector, as a produced input in the livestock sectors. This empirical result lends some support to the Sraffian analysis; however, it is suggested that the perversity arises from failure to take account of the produced input, and that computing ‘net output’