IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v73y1997i221p146-58.html
   My bibliography  Save this article

Producer Surplus without Apology? Evaluating Investments in R&D

Author

Listed:
  • Martin, Will
  • Alston, Julian M

Abstract

Comparison of producer surplus with definitive measures based on the profit function reveals potential problems with using changes in producer surplus to measure the benefits of some common types of technical change. Some illustrative applications indicate that the conventional producer surplus measures may seriously underestimate the change in profit induced by new technology, depending on the characteristics of the underlying technology which define the nature of the supply function, and the nature of the technical change. The authors provide guidelines for identifying cases where producer surplus will underestimate producer research benefits and suggest alternative measures. Copyright 1997 by The Economic Society of Australia.

Suggested Citation

  • Martin, Will & Alston, Julian M, 1997. "Producer Surplus without Apology? Evaluating Investments in R&D," The Economic Record, The Economic Society of Australia, vol. 73(221), pages 146-158, June.
  • Handle: RePEc:bla:ecorec:v:73:y:1997:i:221:p:146-58
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hertel, Thomas W. & Martin, William J. & Leister, Amanda M., 2010. "Potential Implications of a Special Safeguard Mechanism in the WTO: the Case of Wheat," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61000, Agricultural and Applied Economics Association.
    2. Hill, Debbie J. & O'Donnell, Christopher J. & Piggott, Roley R. & Griffith, Garry R., 2000. "The Dual Approach to Research Evaluation:A Simplified Empirical Illustration," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123661, Australian Agricultural and Resource Economics Society.
    3. Dey, Madan Mohan & Kumar, Praduman & Chen, Oai Li & Khan, Md. Akhtaruzzaman & Barik, Nagesh Kumar & Li, Luping & Nissapa, Ayut & Pham, Ngoc Sao, 2013. "Potential impact of genetically improved carp strains in Asia," Food Policy, Elsevier, vol. 43(C), pages 306-320.
    4. Martin, Will, 2000. "Reducing carbon dioxide emissions through joint implementation of projects," Policy Research Working Paper Series 2359, The World Bank.
    5. George Verikios, 2006. "Understanding the World Wool Market: Trade, Productivity and Grower Incomes. Part 5: Relative Returns to Australian Wool Producers of On- and Off-Farm Research," Economics Discussion / Working Papers 06-23, The University of Western Australia, Department of Economics.
    6. Alston, Julian M. & Freebairn, John W. & James, Jennifer S., 2004. "Levy-funded research choices by producers and society," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), March.
    7. repec:idb:idbbks:350 is not listed on IDEAS
    8. Pardey, Philip G. & Alston, Julian M. & Chan-Kang, Connie & Magalhães, Eduardo C. & Vosti, Stephen A., 2002. "Assessing and attributing the benefits from varietal improvement research: evidence from Embrapa, Brazil," EPTD discussion papers 95, International Food Policy Research Institute (IFPRI).
    9. Philip G. Pardey & Julian M. Alston & Connie Chan-Kang & Eduardo C. Magalhães & Stephen A. Vosti, 2006. "International and Institutional R&D Spillovers: Attribution of Benefits among Sources for Brazil's New Crop Varieties," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 104-123.
    10. Gregg Frasco & Chulho Jung, 2001. "When producer surplus underestimates rents," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 29(4), pages 393-405, December.
    11. Martin, Will, 2005. "Outgrowing resource dependence theory and some recent developments," Policy Research Working Paper Series 3482, The World Bank.
    12. Gregg Frasco, 2002. "A comparison of rents and producer surplus when industry input supply functions are interdependent," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 30(4), pages 403-413, December.
    13. Daniel Lederman & William F. Maloney, 2007. "Natural Resources : Neither Curse nor Destiny," World Bank Publications, The World Bank, number 7183, September.
      • Anthony J. Venables & William Maloney & Ari Kokko & Claudio Bravo Ortega & Daniel Lederman & Roberto Rigobón & José De Gregorio & Jesse Czelusta & Shamila A. Jayasuriya & Magnus Blomström & L. Colin X, 2007. "Natural Resources: Neither Curse nor Destiny," IDB Publications (Books), Inter-American Development Bank, number 59538 edited by William Maloney & Daniel Lederman, February.
    14. Hoekman, Bernard & Martin, Will, 2012. "Reducing distortions in international commodity markets : an agenda for multilateral cooperation," Policy Research Working Paper Series 5928, The World Bank.
    15. Giannis Karagiannis & Christos J. Pantzios, 2002. "To Comply or not to Comply with Policy Regulations - the Case of Greek Cotton Growers: a Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 345-351.
    16. Templeton, Deborah J. & Griffith, Garry R. & Piggott, Roley R. & O'Donnell, Christopher J., 2004. "Measuring the Impact of Staple Strength-Enhancing Technologies on Australian Wool Producer Profits: A Duality-Based Approach," Working Papers 12922, University of New England, School of Economics.
    17. Karagiannis, Giannis & Furtan, William Hartley, 2002. "The Effects of Supply Shifts on Producers' Surplus: the Case of Inelastic Linear Supply Curves," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 3(1), January.
    18. Strappazzon, Loris & Eigenraam, Mark & Wimalasuriya, Rukman & Stoneham, Gary, 2002. "Estimating Research Benefits When there is Input and Output Substitution: An Applied Analysis," 2002 Conference (46th), February 13-15, 2002, Canberra 125167, Australian Agricultural and Resource Economics Society.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:73:y:1997:i:221:p:146-58. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/esausea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.