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The Returns to Agricultural Research and the Underinvestment Hypothesis - A Survey

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  • Michael Harris
  • Alan Lloyd

Abstract

Economic research on agricultural research commenced with cost-benefit and production function analyses in the 1950s and 1960s, which consistently showed very high social rates of return. Attention next focused on market failure in the funding of research (the 'underinvestment hypothesis'), and on some political economy and public choice issues. This article surveys the area, by asking the following questions: How much research to do? What research to do? Who gains and loses? What can be said concerning the role of government? Copyright 1991 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

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  • Michael Harris & Alan Lloyd, 1991. "The Returns to Agricultural Research and the Underinvestment Hypothesis - A Survey," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 24(3), pages 16-27.
  • Handle: RePEc:bla:ausecr:v:24:y:1991:i:3:p:16-27
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    Cited by:

    1. Alston, Julian M. & Wyatt, T. J. & Pardey, Philip G. & Marra, Michele C. & Chan-Kang, Connie, 2000. "A meta-analysis of rates of return to agricultural R & D: ex pede Herculem?," Research reports 113, International Food Policy Research Institute (IFPRI).
    2. Roberto Esposti, 2003. "Public R&D investment and cost structure in Italian agriculture, 1960--1995," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(4), pages 509-537, December.
    3. Ruhul A. Salim & Nazrul Islam, 2010. "Exploring the impact of R&D and climate change on agricultural productivity growth: the case of Western Australia ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 561-582, October.
    4. THOMAS COX & John Mullen & Wensheng Hu, 1996. "Nonparametric Measures of the Impacts of Public Research Expenditures on Australian Broadacre Agriculture: Preliminary Results," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 399, Wisconsin-Madison Agricultural and Applied Economics Department.
    5. Mullen, John D. & Cox, Thomas L., 1995. "The Returns From Research In Australian Broadacre Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(02), August.
    6. Thomas COX & John MULLEN & Wensheng HU, 1996. "Nonparametric Measures Of The Impacts Of Public Research Expenditures On Australian Broadacre Agriculture: Preliminary Results," Staff Papers 399, University of Wisconsin Madison, AAE.

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