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Measuring Public Agricultural Research Capital and Its Contribution to State Agricultural Productivity

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  • Huffman, Wallace

Abstract

A methodology for measuring public agricultural research capital is developed and described for the first time, new public agricultural research capital measures for each of the 48 contiguous US states, 1970-1999, are presented, and a new econometric analysis of the contribution of public agricultural research capital to state agricultural productivity is reported. Public agricultural research capital across the states is shown to have five different growth patterns, only one of which is at a constant rate. New TFP results show that public agricultural research capital contributes significantly to agricultural productivity and is larger than previous estimates. Intrastate and spillin public agricultural research capital are shown to be complementary, but private agricultural research capital and public extension are substitutes. The marginal social rate of return to public agricultural, including significant interstate spillovers, is large which has science policy implications.

Suggested Citation

  • 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.
  • Handle: RePEc:isu:genres:13123
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    File URL: http://www2.econ.iastate.edu/papers/p3896-2009-11-02.pdf
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    References listed on IDEAS

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    1. Giancarlo Moschini & Harvey Lapan & Andrei Sobolevsky, 2000. "Roundup ready® soybeans and welfare effects in the soybean complex," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 33-55.
    2. Evenson, Robert E., 2001. "Economic impacts of agricultural research and extension," Handbook of Agricultural Economics,in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 11, pages 573-628 Elsevier.
    3. 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.
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    5. Giancarlo Moschini & Harvey Lapan, 1997. "Intellectual Property Rights and the Welfare Effects of Agricultural R&D," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1229-1242.
    6. José Benjamin Falck-Zepeda & Greg Traxler & Robert G. Nelson, 2000. "Surplus Distribution from the Introduction of a Biotechnology Innovation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 360-369.
    7. Alston, Julian M. & Craig, Barbara J. & Pardey, Philip G., 1998. "Dynamics in the creation and depreciation of knowledge, and the returns to research:," EPTD discussion papers 35, International Food Policy Research Institute (IFPRI).
    8. V. Eldon Ball & Frank M. Gollop & Alison Kelly-Hawke & Gregory P. Swinand, 1999. "Patterns of State Productivity Growth in the U.S. Farm Sector: Linking State and Aggregate Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 164-179.
    9. Huffman, Wallace, 2006. "Economics of Intellectual Property Rights in Plant Materials," Staff General Research Papers Archive 12583, Iowa State University, Department of Economics.
    10. Birgitte Andersen (ed.), 2006. "Intellectual Property Rights," Books, Edward Elgar Publishing, number 3747, April.
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    Citations

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    Cited by:

    1. Sabasi, Darlington & Shumway, C. Richard, 2014. "Technical Change, Efficiency, and Total Factor Productivity in U.S. Agriculture," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170225, Agricultural and Applied Economics Association.
    2. Sabasi, Darlington & Kompaniyets, Lyudmyla, 2015. "Impact of credit constraints on profitability and productivity in U.S. agriculture," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205689, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    3. Baldos, Uris Lantz C. & Viens, Frederi G. & Hertel, Thomas W. & Fuglie, Keith O., 2015. "On the linkages in U.S. public R&D spending, knowledge capital and agricultural productivity growth: A Bayesian approach," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205745, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    4. repec:nbr:nberch:13944 is not listed on IDEAS
    5. Wang, Sun Ling & Ball, Eldon & Nehring, Richard & Williams, Ryan & Chau, Truong, 2014. "Impacts of Climate Change and Extreme Weather on U.S. Agricultural Productivity Growth," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 177170, Agricultural and Applied Economics Association.
    6. Sun Ling Wang & Eldon Ball & Richard Nehring & Ryan Williams & Truong Chau, 2017. "Impacts of Climate Change and Extreme Weather on U.S. Agricultural Productivity: Evidence and Projection," NBER Chapters,in: Understanding Productivity Growth in Agriculture National Bureau of Economic Research, Inc.
    7. Wang, Sun Ling & Ball, V. Eldon & Fulginiti, Lilyan E. & Plastina, Alejandro S., 2012. "Benefits of Public R&D in U.S. Agriculture: Spill-Ins, Extension, and Roads," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126368, International Association of Agricultural Economists.
    8. Huffman, Wallace, 2009. "Technology and Innovation in World Agriculture: Prospects for 2010-2019," Staff General Research Papers Archive 13060, Iowa State University, Department of Economics.

    More about this item

    Keywords

    research capital; agriculture; states; measurement; productivity decomposition; TFP;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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