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Rates of Returns to Public Agricultural Research in 48 U.S. States

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  • Plastina, Alejandro
  • Fulginiti, Lilyan E.

Abstract

The internal rate of return to public investment in agricultural R&D is estimated for each of the continental U.S. states. Theoretically, our contribution provides a way of obtaining the returns to a local public good using Rothbart’s concept of virtual prices. Empirically, we use the spatial dependency among states generated by knowledge spillovers to define the ‘appropriate’ jurisdiction. We estimate an average own-state rate of 17% and a social rate of 27%. These figures should inform the policy debate on the allocation of federal funds to research in anticipation of a possible global food crisis.
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Suggested Citation

  • Plastina, Alejandro & Fulginiti, Lilyan E., 2012. "Rates of Returns to Public Agricultural Research in 48 U.S. States," Staff General Research Papers Archive 39157, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:39157
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    1. Alejandro Onofri & Lilyan Fulginiti, 2008. "Public inputs and dynamic producer behavior: endogenous growth in U.S. agriculture," Journal of Productivity Analysis, Springer, vol. 30(1), pages 13-28, August.
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    4. Jean-Paul Chavas & Thomas L. Cox, 1992. "A Nonparametric Analysis of the Influence of Research on Agricultural Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 583-591.
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    7. 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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    25. Fulginiti, Lilyan & Perrin, Richard, 1993. "The Theory and Measurement of Producer Response under Quotas," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 97-106, February.
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    29. repec:mes:challe:v:31:y:1988:i:4:p:56-58 is not listed on IDEAS
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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. Hurley, Terrance M. & Pardey, Philip G. & Rao, Xudong & Andrade, Robert S., 2016. "Returns to Food and Agricultural R&D Investments Worldwide, 1958-2015," Briefs 249356, University of Minnesota, International Science and Technology Practice and Policy.
    3. Fukuyama, Hirofumi & Weber, William L. & Xia, Yin, 2016. "Time substitution and network effects with an application to nanobiotechnology policy for US universities," Omega, Elsevier, vol. 60(C), pages 34-44.
    4. Jin, Yu & Huffman, Wallace E., 2013. "Reduced U.S. Funding of Public Agricultural Research and Extension Risks Lowering Future Agricultural Productivity Growth Prospects," Staff General Research Papers Archive 36796, Iowa State University, Department of Economics.
    5. 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.
    6. Yu Jin & Wallace E. Huffman, 2016. "Measuring public agricultural research and extension and estimating their impacts on agricultural productivity: new insights from U.S. evidence," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 15-31, January.
    7. Wang, Sun Ling & Heisey, Paul & Schimmelpfennig, David & Ball, Eldon, 2015. "Agricultural Productivity Growth in the United States: Measurement, Trends, and Drivers," Economic Research Report 207954, United States Department of Agriculture, Economic Research Service.

    More about this item

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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