ABSTRACT
This chapter explores the dynamic structure of agricultural production processes and the implications of this structure for the measurement and explanation of agricultural productivity. It attempts to integrate a theory of dynamic production relations with measurement methods in order to draw inferences about the causal relations among factors affecting agricultural productivity. The chapter discusses the dynamic structure of farm-level production and the effects of aggregation. It addresses the causal relations in agricultural production implied by its dynamic structure. The chapter considers macrodynamics within a model of technological change; implications for econometric measurement of aggregate technology; and the explanation of technological change. It analyzes the implications of the dynamic structure of production for analysis of agricultural policies, including research investment policy and government intervention in agricultural markets. The chapter also describes the implications of the analysis for future research on agricultural productivity.
