ABSTRACT
This chapter demonstrates how intensification actually leads to innovation and in the process creates landesque capital. The importance of total physical product curves, rather than diminishing marginal returns curves, in understanding agricultural intensification and the creation of landesque capital cannot be understated, although it has not until now been recognized. The creation of agricultural landesque capital is clearly related to intensification. Research on landesque capital is relatively new and in some ways is an outgrowth of research on agricultural intensification. The discussion thus far has been one of unfolding the complexities of agricultural intensification from the perspective of microeconomics. A quick glance through any introductory agricultural economics textbook will reveal that total physical product, when graphed into a production function curve, invariably take on an S-shape, not unlike a logistics curve. The balance between infrastructural costs and socioeconomic outputs can be envisaged as a parallel to the process of creating landesque capital.
