IDEAS home Printed from https://ideas.repec.org/a/ags/ajaeau/22632.html
   My bibliography  Save this article

A Comparison Of Procedures For Estimating Returns To Research Using Production Functions

Author

Listed:
  • Davis, Jeffrey S.

Abstract

The production function approach has been one of the two main ex-post procedures used to estimate the rate of return to agricultural research. A critical part of estimating the marginal internal rate of return (MIRR) is the procedure adopted to spread the benefits of research through time. Past studies using this approach have given only brief consideration to this computational procedure. The objective in this study was to review the different computational procedures used and, then, using cross-section production function estimates for U.S. agriculture, determine whether the MIRR estimates are sensitive to the computational procedure used. The results from this comparison indicate a large range in the estimates. The implication, then, is that careful consideration should be given to the choice of computational procedure, both when undertaking such a study and when comparing the results of different studies.

Suggested Citation

  • Davis, Jeffrey S., 1981. "A Comparison Of Procedures For Estimating Returns To Research Using Production Functions," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 25(1), pages 1-13, April.
  • Handle: RePEc:ags:ajaeau:22632
    DOI: 10.22004/ag.econ.22632
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/22632/files/25010060.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.22632?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. Gideon Fishelson, 1971. "Returns to Human and Research Capital in the Non-South Agricultural Sector of the United States, 1949–1964," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 129-131.
    2. Robert Evenson, 1967. "The Contribution of Agricultural Research to Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(5), pages 1415-1425.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thirtle, Colin, 1986. "The Production Function Approach to the Relationship Between Productivity Growth and R & D," Manchester Working Papers in Agricultural Economics 232791, University of Manchester, School of Economics, Agricultural Economics Department.
    2. Thirtle, C. & Bottomley, P., 1988. "Explaining Total Factor Productivity Change: Returns to R & D in U.K. Agricultural Research," Manchester Working Papers in Agricultural Economics 232809, University of Manchester, School of Economics, Agricultural Economics Department.
    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. Colin Thirtle, 1999. "Productivity and the Returns to Levy‐Funded R&D for Sugar Production in the Eastern Counties of England," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 450-467, September.
    5. Jayasuriya, Rohan T., 2003. "Economic assessment of technological change and land degradation in agriculture: application to the Sri Lanka tea sector," Agricultural Systems, Elsevier, vol. 78(3), pages 405-423, December.
    6. Seldon, Barry J., 1987. "Economic Evaluation of Forestry Research: Synthesis and Methodology," Evaluating Agricultural Research and Productivity, Proceedings of a Workshop, Atlanta, Georgia, January 29-30, 1987, Miscellaneous Publication 52 50027, University of Minnesota, Agricultural Experiment Station.
    7. Davis, Jeffrey S., 1981. "The Relationship Between the Economic Surplus and Production Function Approaches for Estimating Ex-Post Returns to Agricultural Research," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 49(02), pages 1-11, August.
    8. Makki, Shiva S. & Thraen, Cameron S. & Tweeten, Luther G., 1999. "Returns to American Agricultural Research: Results from a Cointegration Model," Journal of Policy Modeling, Elsevier, vol. 21(2), pages 185-211, March.
    9. Yuen Ping Ho & Poh Kam Wong & Mun Heng Toh, 2009. "The Impact Of R&D On The Singapore Economy: An Empirical Evaluation," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 54(01), pages 1-20.

    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. Blakeslee, Leroy L., 1987. "Measuring the Requirements and Benefits of Productivity Maintenance Research," Evaluating Agricultural Research and Productivity, Proceedings of a Workshop, Atlanta, Georgia, January 29-30, 1987, Miscellaneous Publication 52 50021, University of Minnesota, Agricultural Experiment Station.
    2. Wang, Shanchao & Alston, Julian M. & Pardey, Philip G., 2023. "R&D Lags in Economic Models," Staff Papers 330085, University of Minnesota, Department of Applied Economics.
    3. Townsend, Rob F. & van Zyl, Johan, 1998. "Estimation of the rate of return to wine grape research and technology development expenditures in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(2), pages 1-22, June.
    4. Peter Warr, 2023. "Productivity in Indonesian agriculture: Impacts of domestic and international research," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 835-856, September.
    5. Pardey, Philip G. & Alston, Julian M. & Ruttan, Vernon W., 2010. "The Economics of Innovation and Technical Change in Agriculture," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 939-984, Elsevier.
    6. JEAN-PAUL CHAVAS & Michael Aliber & THOMAS L. COX, 1994. "A Nonparametric Analysis of the Source and Nature of Technical Change: the Case of U.S. Agriculture," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 373, Wisconsin-Madison Agricultural and Applied Economics Department.
    7. Pardey, Philip G. & Craig, Barbara & Hallaway, Michelle L., 1989. "U.S. agricultural research deflators: 1890-1985," Research Policy, Elsevier, vol. 18(5), pages 289-296, October.
    8. Capps, Oral, Jr. & Williams, Gary W., 2006. "The Economic Effectiveness of the Cotton Checkoff Program," Reports 90753, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    9. Thomas COX & John MULLEN & Wensheng HU, 1996. "Nonparametric Measures Of The Impacts Of Public Research Expenditures On Australian Broadacre Agriculture: Preliminary Results," Staff Papers 399, University of Wisconsin Madison, AAE.
    10. 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.
    11. Alejandro Plastina & Lilyan Fulginiti, 2012. "Rates of return to public agricultural research in 48 US states," Journal of Productivity Analysis, Springer, vol. 37(2), pages 95-113, April.
    12. Thirtle, C. & Bottomley, P., 1988. "Explaining Total Factor Productivity Change: Returns to R & D in U.K. Agricultural Research," Manchester Working Papers in Agricultural Economics 232809, University of Manchester, School of Economics, Agricultural Economics Department.
    13. Leholm, Arlen G. & Supalla, Raymond J. & Vollmar, Glen, 1981. "A Methodology for Measuring Potential Benefits from Drought-Oriented Research in Nebraska," Evaluation of Agricultural Research, Proceedings of a Workshop, Minneapolis, MN, May 12-13, 1980, Miscellaneous Publication 8 49073, University of Minnesota, Agricultural Experiment Station.
    14. Alston, Julian M. & Pardey, Philip G., 2022. "Are Ideas Really Getting Harder to Find?," Staff Papers 320517, University of Minnesota, Department of Applied Economics.
    15. Lim, Hongil & Shumway, C. Richard & Love, H. Alan, 2000. "Research Contributions From The Soybean Checkoff Programs," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-19, July.
    16. da Silva, Gabriel L. S.P., 1983. "Effects of Research and Extension on Agricultural Growth and equity in Brazil," 1983 Occasional Paper Series No. 3 197290, International Association of Agricultural Economists.
    17. Andersen, Matthew A., 2019. "Knowledge productivity and the returns to agricultural research: a review," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(2), April.
    18. Thirtle, Colin, 1986. "The Production Function Approach to the Relationship Between Productivity Growth and R & D," Manchester Working Papers in Agricultural Economics 232791, University of Manchester, School of Economics, Agricultural Economics Department.
    19. Easter, K. William & Norton, George W., 1976. "Estimates Of Potential Returns From Added Research Budget For The Land Grant Universities," Staff Papers 13464, University of Minnesota, Department of Applied Economics.
    20. A. A. Araji, 1990. "The functions, focus, and productivity of the state agricultural experiment stations in the United States," Agribusiness, John Wiley & Sons, Ltd., vol. 6(6), pages 633-642.

    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:ajaeau:22632. 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/aaresea.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.