Capital formation in New Zealand agriculture, 1946-67

Abstract

In this report, estimates of gross capital formation, net capital formation, and stocks of capital for the agricultural sector of the economy for the period 1946-67 are presented. The methodology employed is to construct a gross capital formation time series as a first step, using and interpreting available statistics on capital expenditure, and then to convert this series to a net capital formation series by appropriate assumptions on depreciation. Thirdly, base year stocks of capital are estimated on a replacement cost basis, and used with the net capital formation series to give an estimate of the stock of capital employed in agriculture each year since 1946.