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Supply Shifts and the Size of Research Benefits

Author

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  • R. K. Lindner
  • F. G. Jarrett

Abstract

This article claims to do three things. First, develop a formula for measuring size of research benefits which is generally applicable to all types of supply shift. Second, use this formula to assess the possible error involved in previous studies employing alternative equations. Third, initiate discussion on variables which might influence the type of supply shift. The article concludes that uncritical application of previously developed formulas without regard to the type of supply shift can result in substantial bias in estimates of research benefits. The implication is that calculation of rates of return on agricultural investment may also be severely biased.

Suggested Citation

  • R. K. Lindner & F. G. Jarrett, 1978. "Supply Shifts and the Size of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(1), pages 48-58.
    • Handle: RePEc:oup:ajagec:v:60:y:1978:i:1:p:48-58.
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    File URL: http://hdl.handle.net/10.2307/1240160
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