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Valuing State-Level Funding for Research: Results for Florida

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  • Moss, Charles B.

Abstract

This study analyzes the value of agricultural research to Florida by examining the effect of research spending on agricultural productivity, as measured by a total factor productivity index, and profitability, as measured by net farm income. Results suggest that research expenditures do increase agricultural productivity in the state. However, agricultural productivity does not affect net cash income. Further, the economic rents to the productivity gains do not accrue to land values. Instead, the economic value of research innovations accrues more to consumers than to producers. Thus, consumers are the ultimate beneficiaries of agricultural research in Florida, thereby justifying public funding for agricultural research.

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File URL: http://purl.umn.edu/43757
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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 01 (April)
Pages:

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Handle: RePEc:ags:joaaec:43757

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: cointegration; research and development; state expenditures; total factor productivity; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Research and Development/Tech Change/Emerging Technologies; Teaching/Communication/Extension/Profession; H40; H72; Q16;

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  1. V. Eldon Ball & Charles Hallahan & Richard Nehring, 2004. "Convergence of Productivity: An Analysis of the Catch-up Hypothesis within a Panel of States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1315-1321.
  2. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
  3. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation Of Food Demand And Nutrient Elasticities From Household Survey Data," Technical Bulletins 33579, United States Department of Agriculture, Economic Research Service.
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