DEVELOPMENT OF SOVIET AGRICULTURE UNDER A VINTAGE MODEL OF PRODUCTION

The purpose of this paper is to examine within the framework provided by a vintage model of productive activity the pertinent evidence on output, inputs, and the age of fixed capital to further understanding of the sources of growth (1928”62) in Soviet agricultural output. The basic procedure consists of tentatively accepting the embodiment hypothesis, which states that any positive growth in factor productivity is the consequence of improved quality of fixed capital. Data on the age of capital are taken as indicative of its technological quality, and implied rates of growth in such quality are computed as a residual. Conclusions drawn from strict acceptance of the hypothesis are tempered to account for additional qualitative evidence and for the possibility that equipment may be a more effective carrier than structures. Everything considered, it seems that the embodiment hypothesis can make a useful contribution to understanding Soviet agricultural development. © 1969, Oxford University Press.