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By M. J. Stabler (auth.)

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However, examination of government-induced investment of capital inputs in agriculture moves the survey from analysis of resources into questions of policy. Therefore, further discussion is curtailed until the theme is taken up again in Chapter 3, devoted to the economic effects of policy. Technical change and the adoption of innovations. is of technical change constitutes a component in the study of production functions and it has proved to be a difficult variable to handle. The pioneers in this field of study were K.

IV. Buffer stocks held by some kind of government agency which comes into the market to undertake support buying when output is greater than that which will clear the market at an agreed price. The surplus is stored and released when output falls and market price is higher than the price considered desirable. v. Modification to the market structure; this usually involves the setting up of co-operatives or marketing boards which introduce restrictions on output and 52 set minimum standards and prices.

57 policies had a more immediate impact, they prevailed; there was also a political element in this which is examined below. Once the food shortages were overcome it quickly became apparent that the underlying pattern of continued industrialisation, begun in the nineteenth century, would be maintained, This was accompanied by an even greater comparative advantage in manufacturing industries, while rapid technical innovation occurred in agriculture, so depressing farm incomes despite the increasing rate of migration.

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