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Public Inputs and Productivty in the Agricultural Sector: A Dynamic Dual Approach

Author

Listed:
  • Alejandro Onofri

    (University of Nebraska)

  • Lilyan E. Fulginiti

    (University of Nebraska)

Abstract

This paper introduces a dynamic model of productivity measurement based on recent endogenous growth theories. The model presented in this study is based on dynamic duality theory and incorporate public goods (public capital and R&D) as external factors to the firms. It also rationalizes the provision of public inputs by a benevolent social planner that internalizes the effects of them. Moreover, the Le Chatelier principle is extended for this dynamic duality modelin which the public factors are quasi-fixed for the firm and all firm-specific inputs can be adjusted in the long run. Therefore, increasing returns to scale over all inputs can still be tested at the long-run equilibrium perceived by the firm. Additionally, this model permits deriving testable hypotheses related to the two conditions of endogenous growth theory mentioned above. The model is tested with data for the U.S. agricultural sector.

Suggested Citation

  • Alejandro Onofri & Lilyan E. Fulginiti, 2005. "Public Inputs and Productivty in the Agricultural Sector: A Dynamic Dual Approach," Others 0502011, EconWPA.
  • Handle: RePEc:wpa:wuwpot:0502011
    Note: Type of Document - pdf; pages: 40
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    endogenous growth; dynamic productivity; public goods; duality; U.S. agriculture;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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