An Estimation of Value of Marginal Products of Resources By Cobb-Douglas Production Function (With Respect to Agricultural Labor, Capital and Land)

Cobb-Douglas모형(模型)에 의한 자원(資源)의 한계가치생산(限界價値生産)(VMP)추정(推定) (농업노동(農業勞動), 자본(資本) 및 토지(土地)를 중심(中心)으로)

This study is aimed at identifying the value of marginal products(VMP) of agricultural labor, capital and land. The resources are the major portion of input costs of agricultural projects. To appraise economic feasibility of agricultural projects, the real value of the resources would be estimated by VMP of the inputs rather than by distorted actual market prices such as rural wages, rent and interest. To convert the market wage rate into shadow wage rate, covertion factor of 0.90 would be appicable based on the study results. To evaluate the right of way and compensation, VMP of land is recommendable to apply in land pricing rather than actural land rent prevailing in rural area which has been underrated on account of labor shortage and difficulty of farming. Discount rate as a opportunity cost of capital should be applied 7-8% considering the VMP of capital and interest rate of foreign loan from IBRD and ADB. For the successful appraisal of the agricultural projects, the recommendation of this study would be applied in the future.