Annex A. Variables abbreviation of the Model
ARABL = area of arable land
CAPLSN = capital in livestock
CAPLSP = capital in livestock price index
CAPLSR= capital in livestock
CAPN = nominal value of total capital invested
CAPP = price index of total capital invested
CAPR = real value of total capital invested
FERTN = fertiliser expenditure
FERTP = fertiliser price
FERTR= real fertiliser demand
FODN = feed input expenditure
FODP = feed input price index
FODR= feed input
GAS=1 after 1959, =0 before 1959.
GPAN = gross arable production value
GPAP = price index gross arable production
GPAR=
GPLIN = gross livestock production (incl. milk
and eggs)
GPLIP = price index gross livestock production
GPLIR= real livestock production value.
GRASS = permanent grazing land area
INVBD = investment deduction for buildings
(percentages)
INVBN = gross investment in buildings
INVBP = price index of investment in buildings
INVED = investment deduction for equipment
(percentages)
INVEN = gross investment in equipment
INVER= real investment in equipment
INVEP = price index investment in equipment
INVRN = nominal investment in land
consolidation
INVRP = investment price index land
consolidation
INVRR= real investment in land consolidation
LAB1 = labour volume of farmers
LAB2 = labour volume of other family labour
LAB3 = volume of hired labour
LAB3P = wage cost per unit of hired labour
LAND = land area
MEATN= nominal output value of meat.
MEATP= price index for meat
MEATR= real output value of meat
MILKN= nominal output value of milk
MILKP= price index of milk
MILKR= real output value of milk
QUOTA = 0 before 1985, since 1985=1
RDEXP = total expenditure on agricultural R&D
(million constant 1995 Dutch guilders).
CRDEXP= cumulated expenditure on agricultural
R&D research
TR = trend variable (1949=1, 1950=2, etc.)
WEATH=weather index
End notes:
1. If we would have deflated the agricultural prices with a general CPI deflator, the real
agricultural output prices would have shown all a downward trend, like in Bouchet et all
(1989: 282).
2. Since the ADF test has low power against relevant trend stationary alternatives not necessarily
all series have to be of the difference stationary-type (Maddala, 1992, 586). Moreover, the unit
root might not have been rejected because of structural breaks in the data (Maddala, 1992,
587).
3. The test statistics for arable, meat, milk, labour and fertilizer were respectively -6.56, -5.03, -
0.44, -3.03 and -3.65. Critical value at 5% significance level is -4.42 (Davidson and
Mackinnon (1993).
4. For milk equation 3’ was re-specified in first-differences.
5. The standard errors are based on 5000 drawings from the multinomial parameter distribution
(done with @Risk5.4 software).
14
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