PRODUCTIVITY SURPLUS ACCOUNT AND INPUT-OUTPUT RATIO IN AGRICULTURAL ECONOMY
Journal Title: Zagadnienia Ekonomiki Rolnej - Year 2010, Vol 325, Issue 4
Abstract
The article presents some possible uses of the so-called global productivity surplus account integrated with input-output balance to measure transfers of economic benefits between agriculture and its environment. Using productivity surplus account method, which separates the impact of price variables on dividing the real benefits of the producer, it is possible to define in dynamic terms the directions and scale of “surplus drainage”, that is drainage of producer's benefits from agriculture to its environment. This method also allows to identify the level and time changes of the market mechanism failure, and to characterize the development dynamics of analysed sector compared to other sectors.Results obtained by using this method have proved that in a long-time perspective failure of market allocation mechanism is observed in agriculture, which is an argument for active agricultural policy correcting market mechanism in agricultural sector. Corrective measures, consisting in, among others, budget retransfers under CAP, should aim at converging the structure of distribution of economic benefits and ownership entitlement to the resources of agricultural sector in a long time perspective, that is, taking into account at least one economic cycle.
Authors and Affiliations
Bazyli Czyżewski, Aldona Mrówczyńska-Kamińska
Keywords
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