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An Analysis Of Experiment Station Funding Decisions

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  • White, Fred C.
  • Araji, A.A.
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    Abstract

    The decision-making process by which academic departments within an experiment station allocate funds among commodities is examined. The decision to conduct research on some commodities and not on others introduces a problem of censored dependent variables. In order to overcome this problem, a simultaneous equations model with selectivity was used; it was applied to data from the Idaho Experiment Station. The results indicated a simultaneous relationship between research funding levels and expected benefits. Marginal products of one dollar in research investment were $53.80 for applied research, and $8.49 for maintenance research.

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    File URL: http://purl.umn.edu/32065
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    Bibliographic Info

    Article provided by Western Agricultural Economics Association in its journal Western Journal of Agricultural Economics.

    Volume (Year): 15 (1990)
    Issue (Month): 02 (December)
    Pages:

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    Handle: RePEc:ags:wjagec:32065

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    Web page: http://waeaonline.org/
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    Related research

    Keywords: Research and Development/Tech Change/Emerging Technologies; Teaching/Communication/Extension/Profession;

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    1. Kenny, Lawrence W, et al, 1979. "Returns to College Education: An Investigation of Self-Selection Bias Based on the Project Talent Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(3), pages 775-89, October.
    2. Lee, Lung-fei & Maddala, G S & Trost, R P, 1980. "Asymptotic Covariance Matrices of Two-Stage Probit and Two-Stage Tobit Methods for Simultaneous Equations Models with Selectivity," Econometrica, Econometric Society, vol. 48(2), pages 491-503, March.
    3. Lyu, Syu-Jyun Larry & White, Fred C. & Lu, Yao-Chi, 1984. "Estimating Effects Of Agricultural Research And Extension Expenditures On Productivity: A Translog Production Function Approach," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(02), December.
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