THE EFFECTIVENESS OF SUBSTITUTING CAPITAL STREAM FOR HUMAN LABOURIN COMMERCIAL FARMS WITH DIFFERENT PRODUCTION POTENTIAL
The paper aimed to evaluate the effectiveness of substituting a stream of capital for human labour in commodityfarms in Poland depending on their production potential. The studies were based on unit data from the monitoringof the Polish FADN from 2016, using the Cobb-Douglas agricultural production...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Polish Association of Agricultural and Agribusiness Economists
2018-06-01
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| Series: | Annals of the Polish Association of Agricultural and Agribusiness Economists |
| Subjects: | |
| Online Access: | http://rnseria.com/gicid/01.3001.0012.1504 |
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| Summary: | The paper aimed to evaluate the effectiveness of substituting a stream of capital for human labour in commodityfarms in Poland depending on their production potential. The studies were based on unit data from the monitoringof the Polish FADN from 2016, using the Cobb-Douglas agricultural production function method. Using therelationship between agricultural farm production and production factors (workload, cropland area and streamof capital) as the basis for determining isoquant equations and marginal rates of substitution, the effectivenessof substitution was evaluated for two groups of farms: classified as small and medium large farms in terms ofeconomic size. The most effective factor affecting production on the farms was capital. Studies showed that in bothanalyzed groups of farms substituting capital for human labour was advantageous. However, substitution turnedout more profitable in the group of small farms in comparison to farms having a higher production potential. |
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| ISSN: | 2657-781X 2657-7828 |