Building the Knowledge Stock: Lags, Depreciation and Uncertainty in Agricultural R&D
AbstractThe search for an appropriate methodology to analyse the relation between R&D investments and the knowledge stock is the main purpose of the paper. The high estimates of internal rates of return on agricultural R&D reported in the literature suggest that there are major empirical problems with the traditional attribution of productivity growth to R&D investments. We model a stochastic gestation lag of research investment and a geometric depreciation of the knowledge stock. This model of knowledge accumulation from R&D investments outlines the basic parameters underlying the investment lag structure. According to the different types of research project, the approach is applied to public R&D expenditure in Italian agriculture in order to ascertain the empirical consequences and potential of the model.
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Bibliographic InfoPaper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 145.
Date of creation: Jan 2001
Date of revision:
knowledge stock; lag structure; research and development;
Find related papers by JEL classification:
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
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