Location of Repository

Capital Service Flows: Concepts and Comparisons of Alternative Measures in U.S. Agriculture

By Matthew A. Andersen, Julian M. Alston and Philip G. Pardey


Measures of capital services are used in studies of production and to inform policies related to growth and development. A variety of methods have been used to measure capital stocks and service flows. In this study we review methods commonly used to measure capital service flows, and outline important assumptions used in constructing such measures. We examine two recently constructed data sets that measure capital inputs in U.S. agriculture. Substantial differences in the measures appear to have been caused by the use of a fixed real interest rate versus a variable real market interest rate to calculate capital services.capital measures, U.S. agriculture, state-level panel data, Agricultural and Food Policy, Agricultural Finance, Productivity Analysis,

OAI identifier:
Downloaded from http://purl.umn.edu/50098

Suggested articles



  1. (2005). Agricultural Productivity Convergence Across Europe and the United
  2. (1980). American Association of Agricultural Economists Task Force, Measurement of U.S. Agricultural Productivity: A Review of Current Statistics and Proposals for Change,
  3. Capacity Depreciation, Implicit Rental Price, and Investment Demand for Farm Tractors in Canada,”
  4. (2008). Capital as a Factor of Production in OECD Agriculture:
  5. Convergence of Productivity: An Analysis of the Catch-up Hypothesis within a Panel of States,”
  6. (1970). Department of Agriculture), Agricultural Handbook, No. 365 (Washington D.C.: United States Department of Agriculture,
  7. (1925). Department of Commerce, Bureau of Economic Analysis), Fixed Reproducible Tangible Wealth in the United States,
  8. (2009). Department of Labor Statistics, Bureau of Economic Analysis), Inflation and Prices available on line http://www.bls.gov/data/#prices,
  9. Depreciation Patterns for Agricultural Machinery,”
  10. Do Formula or Competitive Grant Funds Have Greater Impacts on State Agricultural Productivity Growth?”
  11. Effective Costs and Chemical Use in United States Agricultural Production: Using the Environment as a "Free" Input,”
  12. From Stock to Flow Capital Inputs for Agricultural Production Functions: A Microanalytic Approach,”
  13. (1989). Government Saving, Capital Formation, and Wealth in the United States, 1947-85.” Chapter
  14. How the Data We Make Can Unmake Us:
  15. Imperfect Price Deflation in Production Systems,”
  16. (1929). Improved Estimates of Fixed Reproducible Tangible Wealth,
  17. (1964). Indices for
  18. (1999). Input Demands and Inefficiency in U.S.
  19. Input, and Productivity Measurement in U.S.
  20. (1996). Inputs, Outputs, and Productivity Developments in U.S.
  21. Investment Behavior, the Measurement of Depreciation,
  22. (1996). Issues in the Measurement of Economic Depreciation:
  23. Levels of Farm Sector Productivity:
  24. (2000). Measuring Capital Input: Concepts and Methods.” OECD Meeting of Agricultural Accounts Experts, Château de la Muette (Paris: Organization for Economic Cooperation and Development,
  25. (2009). Measuring Capital Inputs Using the Physical Inventory Method: with Application to U.S. Agriculture.”
  26. (2003). Measuring Capital,”
  27. Measuring Real Capital Input in
  28. (2001). OECD (Organization for Economic Co-operation and Development). “Measuring Capital: Capital Stocks, Consumption of Fixed Capital, and Capital Services.” (Paris: Organization for Economic Cooperation and Development,
  29. (1964). On a Problem of Index Number Computation Relating to
  30. Patterns of Productivity Growth in the U.S. Farm Sector: Linking State and Aggregate Models.”
  31. Post-War Productivity Patterns in U.S. Agriculture: Influences of Aggregation Procedures in a State-Level Analysi,”
  32. (2005). Pro-cyclical Productivity Patterns in U.S. Agriculture,
  33. (1987). Productivity and U.S. Economic Growth (Boston:
  34. (1995). Productivity: Postwar U.S.
  35. (1989). Rates of Return and Capital Aggregation Using Alternative Rental Prices,” Chapter
  36. (1993). Science for Agriculture: A Long-Term Perspective (Ames: Iowa State
  37. Technical Change and the Aggregate Production Function,”
  38. (1989). Technology and Capital Formation
  39. (1994). The Development of U.S.
  40. (1981). The Estimation of Economic Depreciation Using Vintage Asset Prices: An Application of the Box-Cox Power Transformation,”
  41. (1990). The Measurement of Capital,” Chapter
  42. (1986). The Role of Capital in U.S. Economic Growth, 1948-1979,” Chapter
  43. (2009). various years. 27 USDA Economic Research Service, “Agricultural Productivity in the United States.” Data Set available on line http://www.ers.usda.gov/Data/AgProductivity/,

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.