Setting Efficient Incentives for Agricultural Research: Lessons from Principal-Agent Theory
AbstractA conceptual analysis of important issues in the organization and management of academic research is presented. Principal-agent theory is applied to derive optimal compensation schemes for scientists when they differ in ability, risk aversion, cost of effort, and reservation utility, and to show the optimal trade-off between institutional risk and scientists' abilities. Implications for an efficient organization of research are derived, including how scientists' incentives should be structured to elicit optimal research efforts and direction, whether research direction should be centralized or decentralized, and whether the organization of research should be through external competitive grantsor program and institutional funding. Copyright 2000, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 82 (2000)
Issue (Month): 4 ()
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Other versions of this item:
- Huffman, Wallace & Just, Richard E., 2000. "Setting Efficient Incentives for Agricultural Research: Lessons from Principal-Agent Theory," Staff General Research Papers 5040, Iowa State University, Department of Economics.
- Huffman, Wallace & Just, Richard E., 1998. "Setting Efficient Incentives for Agricultural Research: Lessons from Principal-Agent Theory," Staff General Research Papers 1389, Iowa State University, Department of Economics.
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- Day-Rubenstein, Kelly A. & Heisey, Paul W. & Klotz-Ingram, Cassandra & Frisvold, George B., 2000. "Competitive Grants And The Funding Of Agricultural Research In The U.S," 2000 Annual meeting, July 30-August 2, Tampa, FL 21863, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Kremer, Michael & Zwane, Alix Peterson, 2005. "Encouraging Private Sector Research for Tropical Agriculture," World Development, Elsevier, vol. 33(1), pages 87-105, January.
- Valentina Cristiana MATERIA & Roberto ESPOSTI, 2010. "Modelling Agricultural Public R&D Cofinancing Within A Principal-Agent Framework. The case of an Italian region," Working Papers 347, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
- Huffman, Wallace, 2005. "Developments in the Organization and Finance of Public Agricultural Research in the United States, 1988-1999," Staff General Research Papers 12485, Iowa State University, Department of Economics.
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- Jin, Yu & Huffman, Wallace E., 2013. "Reduced U.S. Funding of Public Agricultural Research and Extension Risks Lowering Future Agricultural Productivity Growth Prospects," Staff General Research Papers 36796, Iowa State University, Department of Economics.
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- Foltz, Jeremy D. & Barham, Bradford L., 2008. "The Productivity Effects of Extension Appointments in Land Grant Colleges," Staff Paper Series 527, University of Wisconsin, Agricultural and Applied Economics.
- Oscar Alfranca, 2005. "Private R&D and Spillovers in European Agriculture," International Advances in Economic Research, Springer, vol. 11(2), pages 201-213, May.
- Olmos, Marta Fernandez & Martinez, Jorge Rosell, 2010. "The Quality-Quantity Trade-off in the Principal-Agent Framework," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), January.
- Ekboir, Javier M. & Espinosa Garcia, Jose Antonio & Espinoza Arellano, Jose de Jesus & Moctezuma Lopez, Georgel & Naranjo, Alfredo Tapia, 2003. "Analisis del sistema Mexicano de investigacion agropecuaria," Economics Working Papers 7684, CIMMYT: International Maize and Wheat Improvement Center.
- Dana G. Dalrymple, 2008. "International agricultural research as a global public good: concepts, the CGIAR experience and policy issues," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(3), pages 347-379.
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