Do Formula or Competitive Grant Funds Have Greater Impacts on State Agricultural Productivity?
This article examines the impact of public agricultural research and extension on agricultural total factor productivity at the state level. The objective is to establish whether federal formula or competitive grant funding of agricultural research has a greater impact on state agricultural productivity. A pooled cross-section time-series model of agricultural productivity is fitted to annual data for forty-eight contiguous states over 1970–1999. Our results show that public agricultural research and agricultural extension have statistically significant positive impacts on state agricultural productivity. In addition, Hatch formula funding has a larger impact on agricultural productivity than federal competitive grant funding, and a reallocation of Hatch formula funds to competitive grant funding would lower agricultural productivity. This seems unlikely to be a socially optimal policy. Furthermore, from a cost-benefit perspective, our study shows that the social marginal annualized real rate of return to public resources invested in agricultural research is 49–62%, and to public agricultural extension, the rate is even larger. Copyright 2006, Oxford University Press.
Volume (Year): 88 (2006)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:88:y:2006:i:4:p:783-798. 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: (Oxford University Press)or (Christopher F. Baum)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.