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Agricultural Research Expenditures in the United States: A Public Goods Perspective

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  • Khanna, Jyoti
  • Huffman, Wallace E
  • Sandler, Todd

Abstract

This paper presents econometric evidence on two different public good formulations of agricultural research: pure public and joint-product models. A nested test for simultaneous equations is proposed and applied for distinguishing between the two models. The procedure is used for testing for neutrality. Using data from 1951-85, the authors illustrate the technique with two-stage least squares estimates for forty-eight U.S. states. An overwhelming number of sample states abide by the joint-product model. Price and full income elasticities are presented. Copyright 1994 by MIT Press.

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  • Khanna, Jyoti & Huffman, Wallace E & Sandler, Todd, 1994. "Agricultural Research Expenditures in the United States: A Public Goods Perspective," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 267-277, May.
    • Handle: RePEc:tpr:restat:v:76:y:1994:i:2:p:267-77
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    Cited by:

    1. Alejandro Plastina & Lilyan Fulginiti, 2012. "Rates of return to public agricultural research in 48 US states," Journal of Productivity Analysis, Springer, vol. 37(2), pages 95-113, April.
    2. Michael Finus & Dirk T.G. Rübbelke, 2008. "Coalition Formation and the Ancillary Benefits of Climate Policy," Working Papers 2008.62, Fondazione Eni Enrico Mattei.
    3. Xia, Yin & Buccola, Steven T., 2001. "Are Basic Science And Biotechnology Complementary Activities?," 2001 Annual meeting, August 5-8, Chicago, IL 20575, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Matthew Clancy & Paul Heisey & Yongjie Ji & GianCarlo Moschini, 2020. "The Roots of Agricultural Innovation: Patent Evidence of Knowledge Spillovers," NBER Chapters, in: Economics of Research and Innovation in Agriculture, pages 21-75, National Bureau of Economic Research, Inc.
    5. Yee, Jet & Huffman, Wallace E., 2001. "Rates Of Return To Public Agricultural Research In The Presence Of Research Spillovers," 2001 Annual meeting, August 5-8, Chicago, IL 20628, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Tokgoz, Simla, 2003. "R&D Spillovers In Agriculture: Results From A North-South Trade Model," 2003 Annual meeting, July 27-30, Montreal, Canada 22258, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Qinxin Guo & Enci Wang & Yongyou Nie & Junyi Shen, 2021. "Revisiting the impact of impure public goods on consumers’ prosocial behavior: A lab experiment in Shanghai," Bulletin of Economic Research, Wiley Blackwell, vol. 73(1), pages 51-66, January.
    8. Alfranca, Oscar & Huffman, Wallace E., 1999. "Private R&D Investments in Agriculture: The Role of Incentives and Institutions," ISU General Staff Papers 199912010800001333, Iowa State University, Department of Economics.
    9. Oscar Alfranca, 2005. "Private R&D and Spillovers in European Agriculture," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 11(2), pages 201-213, May.
    10. McCunn, Alan & Huffman, Wallace, 1998. "Convergence in U.S. Tfp Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research," Staff General Research Papers Archive 1387, Iowa State University, Department of Economics.
    11. Huffman, Wallace & Evenson, Robert E., 2003. "Determinants of the Demand for State Agricultural Experiment Station Resources: A Demand-System Approach," Staff General Research Papers Archive 11175, Iowa State University, Department of Economics.
    12. Pardey, Philip G. & Alston, Julian M. & Ruttan, Vernon W., 2010. "The Economics of Innovation and Technical Change in Agriculture," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 939-984, Elsevier.
    13. Huffman, Wallace E. & Just, Richard E., 1995. "Transactions Costs, Fads, and Politically Motivated Misdirection in Agricultural Research," Working Papers 197818, University of Maryland, Department of Agricultural and Resource Economics.
    14. Debertin, David L., 2001. "Are American Farmers Better Off As A Result Of Technology Gains?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 33(2), pages 1-13, August.
    15. Yee, Jet & Ahearn, Mary Clare & Huffman, Wallace, 2004. "Links among Farm Productivity, Off-Farm Work, and Farm Size in the Southeast," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(3), pages 591-603, December.
    16. repec:kap:iaecre:v:11:y:2005:i:2:p:201-213 is not listed on IDEAS
    17. Huffman, Wallace, 2009. "Measuring Public Agricultural Research Capital and Its Contribution to State Agricultural Productivity," Staff General Research Papers Archive 13123, Iowa State University, Department of Economics.
    18. 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.
    19. Huffman, Wallace, 2005. "Developments in the Organization and Finance of Public Agricultural Research in the United States, 1988-1999," Staff General Research Papers Archive 12485, Iowa State University, Department of Economics.
    20. Miranowski, John & Monchuk, Daniel C., 2004. "Innovative Behavior and Spatial Location - Using Patent Counts and Geographic Location to Estimate Innovative Spillins," Staff General Research Papers Archive 12201, Iowa State University, Department of Economics.
    21. Alfranca, Oscar & Huffman, Wallace E., 2001. "Impact of institutions and public research on private agricultural research," Agricultural Economics, Blackwell, vol. 25(2-3), pages 191-198, September.
    22. Just, Richard E. & Huffman, Wallace E., 2009. "The economics of universities in a new age of funding options," Research Policy, Elsevier, vol. 38(7), pages 1102-1116, September.

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