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Estimating Effects Of Agricultural Research And Extension Expenditures On Productivity: A Translog Production Function Approach

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  • Lyu, Syu-Jyun Larry
  • White, Fred C.
  • Lu, Yao-Chi

Abstract

The effects of agricultural research and extension expenditures on productivity in the United States are estimated during the period 1949-81 using data for ten production regions. The large time-series cross-sectional data base allows the translog production function to be estimated directly. Results from the translog and Cobb-Douglas production functions are compared. The results indicate that use of the Cobb-Douglas production function would overestimate the internal rate of return of agricultural research and extension expenditures in the United States and eight production regions. The total marginal product and internal rate of return for the United States are $8.11 and 66 percent, respectively.

Suggested Citation

  • Lyu, Syu-Jyun Larry & White, Fred C. & Lu, Yao-Chi, 1984. "Estimating Effects Of Agricultural Research And Extension Expenditures On Productivity: A Translog Production Function Approach," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(2), pages 1-8, December.
    • Handle: RePEc:ags:sojoae:29726
    DOI: 10.22004/ag.econ.29726
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    2. Fuglie, Keith & Ballenger, Nicole & Rubenstein, Kelly Day & Klotz, Cassandra & Ollinger, Michael & Reilly, John & Vasavada, Utpal & Yee, Jet, 1996. "Agricultural Research and Development: Public and Private Investments Under Alternative Markets and Institutions," Agricultural Economic Reports 262031, United States Department of Agriculture, Economic Research Service.
    3. Onianwa, Odili & Alderfer, Richard & Levins, Richard A., 1992. "Taxation As A Means Of Reducing Nitrogen Fertilizer Use In Minnesota Corn Production," Staff Papers 13281, University of Minnesota, Department of Applied Economics.
    4. White, Fred C. & Araji, A.A., 1990. "An Analysis Of Experiment Station Funding Decisions," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-9, December.
    5. Kim, Nam-Seok & Heshmati, Almas, 2017. "The Relationship between Economic Growth and Democracy: Alternative Representations of Technological Change," GLO Discussion Paper Series 85, Global Labor Organization (GLO).
    6. Anbes Tenaye, 2020. "Technical Efficiency of Smallholder Agriculture in Developing Countries: The Case of Ethiopia," Economies, MDPI, vol. 8(2), pages 1-27, April.
    7. Richard Sebaggala & Fred Matovu, 2020. "Effects of Agricultural Extension Services on Farm Productivity in Uganda," Working Papers 379, African Economic Research Consortium, Research Department.
    8. Bannor, Frank & Dikgang, Johane & Gelo, Dambala, 2021. "Agricultural total factor productivity growth, technical efficiency, and climate variability in sub-Saharan Africa," EconStor Preprints 231310, ZBW - Leibniz Information Centre for Economics.
    9. Yury Dranev & Maxim Kotsemir & Boris Syomin, 2018. "Diversity of research publications: relation to agricultural productivity and possible implications for STI policy," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(3), pages 1565-1587, September.
    10. Guesmi, Bouali & Gil, Jose Maria, 2017. "Measuring the impact of agricultural research on Catalan agricultural productivity," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261279, European Association of Agricultural Economists.

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    Productivity Analysis;

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