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RETURN ON CAPITAL AND MODEST INFLATION: A NOTE
Author(s) -
Bright Geoff
Publication year - 1997
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.1477-9552.1997.tb01164.x
Subject(s) - inflation (cosmology) , economics , capital (architecture) , rate of return , return on capital employed , real interest rate , monetary economics , macroeconomics , capital formation , financial capital , finance , monetary policy , microeconomics , profit (economics) , physics , archaeology , theoretical physics , history
Hill (1984) suggested adjustments to farm accounts to deal with inflation. This note provides further detail as to how inflation may be dealt with to produce meaningful return on capital measures and uses an example to illustrate their construction. The note suggests that, although under current levels of inflation there may be less sense of urgency, timely consideration should be given to making further adjustments to Farm Business Survey data and to presenting several measures of real return on capital.