Explaining Growth in Dutch Agriculture: Prices, Public R&D, and Technological Change

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).

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