The Economic impact of public agricultural research and development in the United States

Andersen, Matthew A.; Song, Wenxing

doi:10.1111/agec.12011

Cited by 34 publications

(31 citation statements)

References 17 publications

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“…Our research differs from Plastina and Fulginiti (), Wang et al. () and Anderson and Song () provide estimates of the returns to public agricultural research at the state level using state level data from 1949 to 1991. They estimate a state aggregate cost function including the stock of own‐state and area‐type spillin stocks of public agricultural research as regressors.…”

mentioning

confidence: 88%

“…A commodity similarity index for effects of public agricultural research conducted in one state on other states’ agricultural productivity has been used by Alston et al. () and Anderson and Song (). Because of the open‐air, earth surface using nature of agricultural production, technology choice and production problems may follow more closely geo‐climates than commodity mix.…”

Section: Issues In Measuring Agricultural Research and Extensionmentioning

confidence: 99%

“…In the field of state agricultural productivity analysis, a ln–ln productivity function is widely used (Alston et al. ; Anderson and Song ; Huffman and Evenson , ,b). In this study, agricultural productivity in state i and year t is represented as follows:

\begin{matrix} true \\ right prefixln {(italicTFP)}_{i t} & = & left β_{1} + β_{2} prefixln R {(m)}_{i t} + β_{3} prefixln S {(m, r)}_{i t} \\ left + β_{4} prefixln italicEXT {(q)}_{i t} + β_{5} [ln R {(m)}_{i t} \cdot ln EXT {(q)}_{i t}] \\ left + \sum_{k = 1}^{K} δ_{k} D_{k} + τ t + μ_{i t}, μ_{i t} \\ = & left ρ_{i} μ_{i t} + ɛ_{i t}, i = 1, . . ., n, t = 1, . . ., T, \end{matrix}

where TFP is a ratio of the quantity index for farm outputs divided by a quantity index for farm inputs under the control of farmers.…”

Section: The Econometric Model Of State Agricultural Productivitymentioning

confidence: 99%

“…The Plastina and Fulginiti () and Anderson and Song () studies use gross measures of public agricultural research and obtain real social IRR estimates of 29% and 21%, respectively. They do not include extension as an explanatory variable, which would tend to bias upward their estimate, but not likely as much as the downward bias caused by using a gross rather than net measure of public agricultural research.…”

Section: Returns To Public Agricultural Research and Extensionmentioning

confidence: 99%

“…Anderson and Song () examine the impact of public agricultural research undertaken by USDA and SAESs on agricultural productivity at the U.S. aggregate level. In converting these research expenditures to a stock variable, they assume a short gestation period followed by a total lag length of 50 years.…”

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confidence: 99%

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Measuring public agricultural research and extension and estimating their impacts on agricultural productivity: new insights from U.S. evidence

Huffman

2015

Agricultural Economics

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This article provides new estimates of the marginal product of public agricultural research and extension on state agricultural productivity for the U.S., using updated data and definitions, and forecasts of future agricultural productivity growth by state. The underlying rationale for a number of important decisions that underlie the data used in cost‐return estimates for public agricultural research and extension are presented. The parameters of the state productivity model are estimated from a panel of contiguous U.S. 48 states from 1970 to 2004. Public research and extension are shown to be substitutes rather than complements. The econometric model of state agricultural TFP predicts growth rates of TFP for two‐thirds of states that is less than the past trend rate. The results and data indicate a real social rate of return to public investments in agricultural research of 67% and to agricultural extension of 100+%. The article concludes with guidance for TFP analyses in other countries.

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mentioning

confidence: 88%

Section: Issues In Measuring Agricultural Research and Extensionmentioning

confidence: 99%

\begin{matrix} true \\ right prefixln {(italicTFP)}_{i t} & = & left β_{1} + β_{2} prefixln R {(m)}_{i t} + β_{3} prefixln S {(m, r)}_{i t} \\ left + β_{4} prefixln italicEXT {(q)}_{i t} + β_{5} [ln R {(m)}_{i t} \cdot ln EXT {(q)}_{i t}] \\ left + \sum_{k = 1}^{K} δ_{k} D_{k} + τ t + μ_{i t}, μ_{i t} \\ = & left ρ_{i} μ_{i t} + ɛ_{i t}, i = 1, . . ., n, t = 1, . . ., T, \end{matrix}

where TFP is a ratio of the quantity index for farm outputs divided by a quantity index for farm inputs under the control of farmers.…”

Section: The Econometric Model Of State Agricultural Productivitymentioning

confidence: 99%

Section: Returns To Public Agricultural Research and Extensionmentioning

confidence: 99%

mentioning

confidence: 99%

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Measuring public agricultural research and extension and estimating their impacts on agricultural productivity: new insights from U.S. evidence

Huffman

2015

Agricultural Economics

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Impact of public research investments on agricultural productivity in Chile

Guesmi,

Monje,

Alfaro Valenzuela

et al. 2023

Agribusiness

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This study examined the relationship between public research and development (R&D) investment and agricultural productivity growth in Chile during the 1964–2017 period. To achieve this objective, we used a combined approach based on accounting and econometric measures. The results indicated that agricultural productivity grew at an annual average rate of 2.11%. Additionally, the empirical findings show a positive and significant relationship between public R&D investment and agricultural productivity. Furthermore, the cost–benefit analysis reveals a high return (15%–21%) to public R&D resources, which may have contributed to enhancing the productivity performance of Chile's agricultural sector. In this regard, our findings suggest that agricultural R&D spending has been profitable in recent decades and that a higher allocation of R&D resources is justifiable. [EconLit Citations: C22, Q14, Q16].

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The R&D Cost of Climate Mitigation in Agriculture

Fuglie,

Ray,

Baldos

et al. 2024

Simple-G

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Agriculture is responsible for about one-quarter of global emissions of greenhouse gases (GHGs). Supply-side approaches for reducing emissions from agriculture rely on emissions-saving technological change and the environmental protection of carbon-rich areas. We investigate how productivity policies, in the form of agricultural research and development (R&D) spending, might affect GHG emissions from agriculture compared to environmental policies that restrict agricultural land use or production practices that may cause environmental harm. Using a global economic model, we project outcomes from policy scenarios involving R&D, environmental policies, and combinations of both. At the global level, more R&D spending to accelerate productivity growth reduces GHG emissions from land-use change less effectively than targeted environmental policies. However, accelerated productivity growth reduces emissions intensity of agricultural production and reduces the cost of the environmental policy. Moreover, higher levels of productivity permanently lower agricultural GHG emissions and generally improve global food security. Policies that restrict agricultural factor inputs in order to reduce local environmental costs may increase global agricultural GHG emissions and worsen food insecurity. These consequences could be avoided by increasing R&D spending to accelerate agricultural productivity growth that is either factor neutral or biased toward saving production factors associated with negative environmental externalities.

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The Economic impact of public agricultural research and development in the United States

Cited by 34 publications

References 17 publications

Measuring public agricultural research and extension and estimating their impacts on agricultural productivity: new insights from U.S. evidence

Measuring public agricultural research and extension and estimating their impacts on agricultural productivity: new insights from U.S. evidence

Impact of public research investments on agricultural productivity in Chile

The R&D Cost of Climate Mitigation in Agriculture

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