IDEAS home Printed from https://ideas.repec.org/p/ags/midasp/11766.html
   My bibliography  Save this paper

Analysis Of Projects With Price Effects, And Application To Innovation And Technical Change

Author

Listed:
  • Oehmke, James F.
  • Crawford, Eric W.

Abstract

This paper provides an introduction to benefit-cost analysis of projects with price effects, intended for use in teaching. The impact of price changes on consumers' and producers' surplus under competitive market assumptions is presented graphically with linked numerical examples. The effect of demand and supply shifts on social surplus is then discussed, distinguishing the shift effect holding price constant from the price effects themselves. The distribution of gains and losses to consumers and producers is also evaluated. The analysis is then extended to include distortions such as price supports and ceiling prices. Applications to the evaluation of agricultural research impacts are then introduced, drawing on recent literature. An illustrative exercise based on maize research in Zambia is included.

Suggested Citation

  • Oehmke, James F. & Crawford, Eric W., 2004. "Analysis Of Projects With Price Effects, And Application To Innovation And Technical Change," Staff Paper Series 11766, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midasp:11766
    DOI: 10.22004/ag.econ.11766
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/11766/files/sp04-02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.11766?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Masakatsu Akino & Yujiro Hayami, 1975. "Efficiency and Equity in Public Research: Rice Breeding in Japan's Economic Development: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(4), pages 734-735.
    2. Oehmke, James F., 1988. "The calculation of returns to research in distorted markets," Agricultural Economics, Blackwell, vol. 2(4), pages 291-302, December.
    3. Sugden, Robert & Williams, Alan, 1978. "The Principles of Practical Cost-Benefit Analysis," OUP Catalogue, Oxford University Press, number 9780198770411.
    4. James F. Oehmke, 1988. "The Calculation of Returns to Research in Distorted Markets," Agricultural Economics, International Association of Agricultural Economists, vol. 2(4), pages 291-302, December.
    5. Masakatsu Akino & Yujiro Hayami, 1975. "Efficiency and Equity in Public Research: Rice Breeding in Japan's Economic Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(1), pages 1-10.
    6. James F. Oehmke & Eric W. Crawford, 2002. "The Sensitivity of Returns to Research Calculations to Supply Elasticity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 366-369.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmed, Mohamed M. & Masters, William A. & Sanders, John H., 1995. "Returns from research in economies with policy distortions: hybrid sorghum in Sudan," Agricultural Economics, Blackwell, vol. 12(2), pages 183-192, August.
    2. Frisvold, George B. & Sullivan, John & Raneses, Anton, 2003. "Genetic improvements in major US crops: the size and distribution of benefits," Agricultural Economics, Blackwell, vol. 28(2), pages 109-119, March.
    3. 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, July.
    4. Pedro Andres Garzon Delvaux & Heinrich Hockmann & Peter Voigt & Pavel Ciaian & Sergio Gomez y Paloma, 2018. "The impact of private R&D on the performance of food-processing firms: Evidence from Europe, Japan and North America," JRC Research Reports JRC104144, Joint Research Centre.
    5. Kim, Yun-Shik & Sumner, Daniel A., 2005. "Measuring Research Benefits With Import Ban Restrictions, Quality Changes, Non-Market Influences On Adoption And Food Security Incentives," 2005 Annual meeting, July 24-27, Providence, RI 19148, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Edwards, Geoff W. & Freebairn, John W., 1982. "The Social Benefits from an Increase in Productivity in a Part of an Industry," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(02), pages 1-18, August.
    7. Zhi Xu, 1994. "Assessing Distributional Impacts of Forest Policies and Projects," Evaluation Review, , vol. 18(3), pages 281-311, June.
    8. Fertő, Imre, 1998. "Az agrárpolitika politikai gazdaságtana III. Vegyes motívumok az agrárpolitikában: termelő és ragadozó politikák [The political economy of agrarian policy. Part III. Mixed motives in agrarian polic," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 424-436.
    9. Vernon Ruttan, 1980. "Bureaucratic productivity: The case of agricultural research," Public Choice, Springer, vol. 35(5), pages 529-547, January.
    10. McVey, Marty Jay, 1996. "Valuing quality differentiated grains from a total logistics perspective," ISU General Staff Papers 1996010108000012326, Iowa State University, Department of Economics.
    11. Midingoyi, Soul-kifouly & Hippolyte, Affognon & Georges, Ong'amo & Bruno, LeRu, 2015. "Economic Welfare Change Attributable to Biological Control of Lepidopteran Cereal Stemborer Pests in East and Southern Africa: Cases of Maize and Sorghum in Kenya, Mozambique and Zambia," 2015 Conference, August 9-14, 2015, Milan, Italy 212461, International Association of Agricultural Economists.
    12. Scobie, Grant M., 1976. "Who Benefits From Agricultural Research?," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 44(04), pages 1-6, December.
    13. Jarrett, Frank G. & Lindner, Robert K., 1977. "Research Benefits Revisited," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 45(04), pages 1-12, December.
    14. Raitzer, David A. & Kelley, Timothy G., 2008. "Benefit-cost meta-analysis of investment in the International Agricultural Research Centers of the CGIAR," Agricultural Systems, Elsevier, vol. 96(1-3), pages 108-123, March.
    15. Gardner, Bruce L., 1992. "Price Supports and Optimal Spending on Agricultural Research," Working Papers 197793, University of Maryland, Department of Agricultural and Resource Economics.
    16. Wilson, Clevo & Tisdell, Clem, 2001. "Why farmers continue to use pesticides despite environmental, health and sustainability costs," Ecological Economics, Elsevier, vol. 39(3), pages 449-462, December.
    17. A. C. Herruzo, 1992. "Producer Benefits From Technology Induced Supply Shifts In The Ec Cotton Regime," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(1), pages 56-63, January.
    18. Lee, David R. & Rausser, Gordon C., 1992. "The Structure of Research and Transfer Policies in International Agriculture: Evidence and Implications," 1992 Occasional Paper Series No. 6 197731, International Association of Agricultural Economists.
    19. Rajeswari S., 1995. "Agricultural research effort: Conceptual clarity and measurement," World Development, Elsevier, vol. 23(4), pages 617-635, April.
    20. C.S. Kim & C. Sandretto & N.D. Uri, 1997. "The Implications of the Adoption of Alternative Production Practices on the Estimation of Input Productivity in Agriculture," Energy & Environment, , vol. 8(2), pages 133-150, June.

    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:ags:midasp:11766. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/damsuus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.