The influence of the large scale mechanization of ware potato growing upon supply responsiveness in The Netherlands (1955–1978)

Abstract

This article brings together the findings of an investigation into the influence of large scale mechanization on the supply response of ware potatoes in The Netherlands (1955–1978). For this purpose the considered period has been divided into two sub-periods: the period before the introduction of the mechanization (1955–1965) and the period within which this mechanization started (1965–1978). A theoretical supply response model has been developed. The estimation results of this model with respect to the two sub-periods indicate that mechanization sharply reduced the supply responsiveness. The results did not support the hypothesis that the gross margin should be preferred to the product price as an explanatory variable.