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The Social Benefits from an Increase in Productivity in a Part of an Industry

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  • Edwards, Geoff W.
  • Freebairn, John W.

Abstract

Productivity often increases in a part of an industry while remaining unchanged in the rest of the industry. In assessing the social gain from a productivity increase in a part of an industry producing a tradeable commodity it is necessary to consider the relationships between the part of the industry affected, the industry in the rest of the country concerned and the industry in the rest of the world. In this paper an attempt to assess the social benefits of serrated tussock control on the tablelands of New South Wales is critically reviewed and found wanting. An analytical framework is outlined that is conceptually appropriate to that task, and to other situations where cost per unit of output is reduced in a part of an industry. The social gains from the control of serrated tussock on the New South Wales tablelands are recalculated. A discussion is also presented of some issues in the distribution of the gains from research.

Suggested Citation

  • Edwards, Geoff W. & Freebairn, John W., 1982. "The Social Benefits from an Increase in Productivity in a Part of an Industry," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 02), pages 1-18, August.
  • Handle: RePEc:ags:remaae:12245
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    File URL: http://ageconsearch.umn.edu/record/12245/files/50020193.pdf
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    References listed on IDEAS

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    1. Quilkey, John J., 1970. "The Merino Export Embargo - A Comparative Static Analysis," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 1), pages 1-9, June.
    2. Duncan, R & Tisdell, Clem, 1971. "Research and Technical Progress: The Returns to Producers," The Economic Record, The Economic Society of Australia, vol. 47(117), pages 124-129, March.
    3. Vere, David T. & Sinden, Jack A. & Campbell, M.H., 1980. "Social Benefits of Serrated Tussock Control in New South Wales," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 03), pages 1-16, December.
    4. R. Campbell & B. Gardiner & H. Haszler, 1980. "On The Hidden Revenue Effects Of Wool Price Stabilisation In Australia: Initial Results," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 1-15, April.
    5. 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.
    6. Campbell, Rachel & Gardiner, B. & Haszler, Henry, 1980. "On The Hidden Revenue Effects Of Wool Price Stabilisation In Australia: Initial Results," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 1), pages 1-15, April.
    7. Emerson, Peter M. & Plato, Gerald E., 1978. "Social Returns To Disease And Parasite Control In Agriculture: Witchweed In The United States," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 1.
    8. R. K. Lindner & F. G. Jarrett, 1980. "Supply Shifts and the Size of Research Benefits: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 841-844.
    9. Alan A. Powell, 1959. "Export Receipts And Expansion In The Wool Industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 3(2), pages 64-74, December.
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    Cited by:

    1. J. Brian Hardaker & Jock R. Anderson & John L. Dillon, 1984. "Perspectives On Assessing The Impacts Of Improved Agricultural Technologies In Developing Countries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 28(2-3), pages 87-108, 08-12.
    2. McLeod, Ross & Collins, D.J. & Barnes, E.H. & Dobson, R.J., 1992. "Estimating the Gains of Strategic Internal Parasite Control in Sheep," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 146545, Australian Agricultural and Resource Economics Society.
    3. Alston, Julian M., 1991. "Research Benefits in a Multimarket Setting: A Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 59(01), April.
    4. Edwards, Geoff W., 1987. "Evaluating the Research Benefits for Traded Commodities," Evaluating Agricultural Research and Productivity, Proceedings of a Workshop, Atlanta, Georgia, January 29-30, 1987, Miscellaneous Publication 52 50025, University of Minnesota, Agricultural Experiment Station.
    5. Vere, D. T. & Jones, R. E. & Saunders, Glen, 2004. "The economic benefits of rabbit control in Australian temperate pastures by the introduction of rabbit haemorrhagic disease," Agricultural Economics, Blackwell, vol. 30(2), pages 143-155, March.
    6. Brennan, John P. & Godyn, Dirk L. & Johnston, Brian G., 1989. "An Economic Framework for Evaluating New Wheat Varieties," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 57, December.
    7. Vere, David T. & Jones, Randall E. & Dowling, Peter, 2004. "An Economic Evaluation of Research into the Improved Management of the Annual Grass Weed Vulpia in Temperate Pastures in South-Eastern Australia," Research Reports 42503, New South Wales Department of Primary Industries Research Economists.
    8. Young, Ralph & Carter, Marc, 1990. "The Economic Evaluation of Environmental Research: A Case Study of the South-East Forests," 1990 Conference (34th), February 13-15, 1990, Brisbane, Australia 145486, Australian Agricultural and Resource Economics Society.
    9. Pannell, David J., 1988. "Weed Management: A Review of Applied Economics Research in Australia," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(03), December.
    10. Brennan, John P. & Thorne, Fiona S. & Kelly, Paul W. & Murray, Gordon M., 2004. "Defining the Costs of an Outbreak of Karnal Bunt of Wheat," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58382, Australian Agricultural and Resource Economics Society.
    11. Carmody, M.J. & Hardaker, J. Brian & Powell, Roy A. & Everett, R.E., 1984. "An Economic Evaluation of the Footrot Eradication Program in the New England Region of New South Wales," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 52(01), April.
    12. J. P. Voon & G. W. Edwards, 1991. "Research Payoff From Quality Improvement: The Case Of Backfat Depth In Pigs," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 66-76.
    13. Jones, R. E. & Vere, D. T. & Campbell, M. H., 2000. "The external costs of pasture weed spread: an economic assessment of serrated tussock control," Agricultural Economics, Blackwell, vol. 22(1), pages 91-103, January.
    14. Charyulu, D. Kumara & Shyam, D. Moses & Bantilan, Ma Cynthia S. & Nedumaran, S. & Davis, Jeff, 2014. "Unit Cost Reduction across Production Environments and Measurement of Welfare Changes," 2014 Conference (58th), February 4-7, 2014, Port Maquarie, Australia 165847, Australian Agricultural and Resource Economics Society.

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    Keywords

    Productivity Analysis;

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