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The Economic Incidence of R&D and Promotion Investments in the Australian Beef Industry

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Author Info
X. Zhao ()
J.D. Mullen
G.R. Griffith
R.R. Piggott
W.E. Griffiths

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Abstract

The issue of the relative returns to farmers from R&D and promotion is examined using a multi-sectoral equilibrium displacement model of the Australian beef industry. Total economic surplus changes and their distributions among various industry groups resulting from 1% cost reductions in various farm and off-farm sectors, and from 1% price premiums from domestic and export market promotion, are estimated. The results are consistent with previous studies in showing that in general, the share of total benefits to farmers is larger from on-farm research than from most off-farm research, and is larger from most types of research than from domestic promotion. The share of total benefits to farmers is larger from export promotion than from off-farm research, and from domestic promotion. The net returns from the different cost-reduction or demand-enhancing scenarios depend on the costs of achieving them.

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File URL: http://www.buseco.monash.edu.au/depts/ebs/pubs/wpapers/2002/wp16-02.pdf
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Publisher Info
Paper provided by Monash University, Department of Econometrics and Business Statistics in its series Monash Econometrics and Business Statistics Working Papers with number 16/02.

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Length: 34 pages
Date of creation: Nov 2002
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Handle: RePEc:msh:ebswps:2002-16

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Related research
Keywords: Economics of R&D promotion beef industry equilibrium displacement modelling.

Find related papers by JEL classification:
Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Agricultural Extension Services
Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
C69 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Other
M30 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - General
D60 - Microeconomics - - Welfare Economics - - - General

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References listed on IDEAS
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  1. Griffiths, William & Zhao, Xueyan, 2000. " A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models: Comment," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(1), pages 236-40, February. [Downloadable!] (restricted)
  2. Davis, George C & Espinoza, M Cristina, 2000. " A Unified Approach to Sensitivity Analysis in Equilibrium Displacement Models: Reply," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(1), pages 241-43, February. [Downloadable!] (restricted)
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