Title: Benefits of Resource Scarcity: A Case Study of the Farm Sector
Abstract: A disaggregated partial equilibrium model is developed to demonstrate that farm labor benefitted in the past and will benefit in the future from a rise in the cost of energy. Although a lack of good data makes it very difficult to assess the impact of the energy crisis on returns to farmland, one can speculate that landowners must profit because it is generally accepted that farm production is closely approximated by a Cobb-Douglas production function. It is shown that, in real terms, returns to farm labor increased significantly during the 1970s. The main contributing factor was the agricultural export component. Although rising energy prices may slow general economic growth, the analysis indicates that farm labor will benefit relative to the labor in other sectors. 12 references, 3 tables.
Publication Year: 1980
Publication Date: 1980-05-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 1
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