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Measuring Public Agricultural Research Capital and Its Contribution to State Agricultural Productivity

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  • Huffman, Wallace

Abstract

A methodology for measuring public agricultural research capital is developed and described for the first time, new public agricultural research capital measures for each of the 48 contiguous US states, 1970-1999, are presented, and a new econometric analysis of the contribution of public agricultural research capital to state agricultural productivity is reported. Public agricultural research capital across the states is shown to have five different growth patterns, only one of which is at a constant rate. New TFP results show that public agricultural research capital contributes significantly to agricultural productivity and is larger than previous estimates. Intrastate and spillin public agricultural research capital are shown to be complementary, but private agricultural research capital and public extension are substitutes. The marginal social rate of return to public agricultural, including significant interstate spillovers, is large which has science policy implications.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 13123.

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Date of creation: 02 Nov 2009
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Handle: RePEc:isu:genres:13123

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Web page: http://www.econ.iastate.edu
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Keywords: research capital; agriculture; states; measurement; productivity decomposition; TFP;

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References

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  1. Giancarlo Moschini & Harvey Lapan, 1997. "Intellectual Property Rights and the Welfare Effects of Agricultural R&D," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 79(4), pages 1229-1242.
  2. José Benjamin Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Surplus Distribution from the Introduction of a Biotechnology Innovation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 82(2), pages 360-369.
  3. Evenson, Robert E., 2001. "Economic impacts of agricultural research and extension," Handbook of Agricultural Economics, Elsevier, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 11, pages 573-628 Elsevier.
  4. Huffman, Wallace, 2006. "Economics of Intellectual Property Rights in Plant Materials," Staff General Research Papers, Iowa State University, Department of Economics 12583, Iowa State University, Department of Economics.
  5. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521477185.
  6. Giancarlo Moschini & Harvey Lapan & Andrei Sobolevsky, 2000. "Roundup ready� soybeans and welfare effects in the soybean complex," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 33-55.
  7. Khanna, Jyoti & Huffman, Wallace E & Sandler, Todd, 1994. "Agricultural Research Expenditures in the United States: A Public Goods Perspective," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 267-77, May.
  8. V. Eldon Ball & Frank M. Gollop & Alison Kelly-Hawke & Gregory P. Swinand, 1999. "Patterns of State Productivity Growth in the U.S. Farm Sector: Linking State and Aggregate Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 81(1), pages 164-179.
  9. Alston, Julian M. & Craig, Barbara J. & Pardey, Philip G., 1998. "Dynamics in the creation and depreciation of knowledge, and the returns to research:," EPTD discussion papers, International Food Policy Research Institute (IFPRI) 35, International Food Policy Research Institute (IFPRI).
  10. Alston, Julian M. & Pardey, Philip G., 2001. "Attribution and other problems in assessing the returns to agricultural R&D," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 25(2-3), September.
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Cited by:
  1. Huffman, Wallace, 2009. "Technology and Innovation in World Agriculture: Prospects for 2010-2019," Staff General Research Papers, Iowa State University, Department of Economics 13060, Iowa State University, Department of Economics.
  2. Wang, Sun Ling & Ball, V. Eldon & Fulginiti, Lilyan E. & Plastina, Alejandro S., 2012. "Benefits of Public R&D in U.S. Agriculture: Spill-Ins, Extension, and Roads," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil, International Association of Agricultural Economists 126368, International Association of Agricultural Economists.

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