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The Social Benefits from an Increase in Productivity in a Part of an Industry

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  • Edwards, Geoff W.
  • Freebairn, John W.

Abstract

Productivity often increases in a part of an industry while remaining unchanged in the rest of the industry. In assessing the social gain from a productivity increase in a part of an industry producing a tradeable commodity it is necessary to consider the relationships between the part of the industry affected, the industry in the rest of the country concerned and the industry in the rest of the world. In this paper an attempt to assess the social benefits of serrated tussock control on the tablelands of New South Wales is critically reviewed and found wanting. An analytical framework is outlined that is conceptually appropriate to that task, and to other situations where cost per unit of output is reduced in a part of an industry. The social gains from the control of serrated tussock on the New South Wales tablelands are recalculated. A discussion is also presented of some issues in the distribution of the gains from research.

Suggested Citation

  • Edwards, Geoff W. & Freebairn, John W., 1982. "The Social Benefits from an Increase in Productivity in a Part of an Industry," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(02), pages 1-18, August.
    • Handle: RePEc:ags:remaae:12245
    DOI: 10.22004/ag.econ.12245
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    References listed on IDEAS

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    1. R. Duncan & C. Tisdell, 1971. "Research and Technical Progress: The Returns to Producers," The Economic Record, The Economic Society of Australia, vol. 47(1), pages 124-129, March.
    2. repec:bla:ecorec:v:47:y:1971:i:117:p:124-29 is not listed on IDEAS
    3. Roger N. Rose, 1980. "Supply Shifts and Research Benefits: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 834-837.
    4. Masakatsu Akino & Yujiro Hayami, 1975. "Efficiency and Equity in Public Research: Rice Breeding in Japan's Economic Development: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(4), pages 734-735.
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    6. Campbell, Rachel & Gardiner, B. & Haszler, Henry, 1980. "On The Hidden Revenue Effects Of Wool Price Stabilisation In Australia: Initial Results," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 1-15, April.
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    9. Quilkey, John J., 1970. "The Merino Export Embargo - A Comparative Static Analysis," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 14(1), pages 1-9, June.
    10. Vere, David T. & Sinden, Jack A. & Campbell, M.H., 1980. "Social Benefits of Serrated Tussock Control in New South Wales," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(03), pages 1-16, December.
    11. R. Campbell & B. Gardiner & H. Haszler, 1980. "On The Hidden Revenue Effects Of Wool Price Stabilisation In Australia: Initial Results," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 1-15, April.
    12. Joseph G. Nagy & W. Hartley Furtan, 1978. "Economic Costs And Returns From Crop Development Research: The Case Of Rapeseed Breeding In Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 26(1), pages 1-14, February.
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    14. Masakatsu Akino & Yujiro Hayami, 1975. "Efficiency and Equity in Public Research: Rice Breeding in Japan's Economic Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(1), pages 1-10.
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    Cited by:

    1. David T. Vere & Randall E. Jones & Garry R. Griffith, 2003. "Economic benefits of public investment in weed management: the case of vulpia in south‐eastern Australia's temperate pasture areas," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 519-539, December.
    2. Pannell, David J., 1988. "Weed Management: A Review of Applied Economics Research in Australia," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(03), pages 1-15, December.
    3. Brennan, John P. & Thorne, Fiona S. & Kelly, Paul W. & Murray, Gordon M., 2004. "Defining the Costs of an Outbreak of Karnal Bunt of Wheat," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58382, Australian Agricultural and Resource Economics Society.
    4. Carmody, M.J. & Hardaker, J. Brian & Powell, Roy A. & Everett, R.E., 1984. "An Economic Evaluation of the Footrot Eradication Program in the New England Region of New South Wales," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 52(01), pages 1-13, April.
    5. J. P. Voon & G. W. Edwards, 1991. "Research Payoff From Quality Improvement: The Case Of Backfat Depth In Pigs," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 66-76, January.
    6. Hardaker, J. Brian & Anderson, Jock R. & Dillon, John L., 1984. "Perspectives On Assessing The Impacts Of Improved Agricultural Technologies In Developing Countries," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 28(2-3), pages 1-22, August.
    7. Vere, David T. & Jones, Randall E. & Dowling, Peter, 2004. "An Economic Evaluation of Research into the Improved Management of the Annual Grass Weed Vulpia in Temperate Pastures in South-Eastern Australia," Research Reports 42503, New South Wales Department of Primary Industries Research Economists.
    8. Charyulu, D. Kumara & Shyam, D. Moses & Bantilan, Ma Cynthia S. & Nedumaran, S. & Davis, Jeff, 2014. "Unit Cost Reduction across Production Environments and Measurement of Welfare Changes," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165847, Australian Agricultural and Resource Economics Society.
    9. Vere, D. T. & Jones, R. E. & Saunders, Glen, 2004. "The economic benefits of rabbit control in Australian temperate pastures by the introduction of rabbit haemorrhagic disease," Agricultural Economics, Blackwell, vol. 30(2), pages 143-155, March.
    10. Julian M Alston, 2018. "Reflections on Agricultural R&D, Productivity, and the Data Constraint: Unfinished Business, Unsettled Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(2), pages 392-413.
    11. Taleb, M. & Collins, D., 1992. "Cost Effective Lice Control Strategies in NSW and the Value of Extension," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 147325, Australian Agricultural and Resource Economics Society.
    12. Young, Ralph & Carter, Marc, 1990. "The Economic Evaluation of Environmental Research: A Case Study of the South-East Forests," 1990 Conference (34th), February 13-15, 1990, Brisbane, Australia 145486, Australian Agricultural and Resource Economics Society.
    13. Alston, Julian M., 1991. "Research Benefits in a Multimarket Setting: A Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 59(01), pages 1-30, April.
    14. Brennan, John P. & Godyn, Dirk L. & Johnston, Brian G., 1989. "An Economic Framework for Evaluating New Wheat Varieties," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 57(01-02-03), pages 1-18, December.
    15. Edwards, Geoff W., 1987. "Evaluating the Research Benefits for Traded Commodities," Evaluating Agricultural Research and Productivity, Proceedings of a Workshop, Atlanta, Georgia, January 29-30, 1987, Miscellaneous Publication 52 50025, University of Minnesota, Agricultural Experiment Station.
    16. McLeod, Ross & Collins, D.J. & Barnes, E.H. & Dobson, R.J., 1992. "Estimating the Gains of Strategic Internal Parasite Control in Sheep," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 146545, Australian Agricultural and Resource Economics Society.
    17. Jones, R. E. & Vere, D. T. & Campbell, M. H., 2000. "The external costs of pasture weed spread: an economic assessment of serrated tussock control," Agricultural Economics, Blackwell, vol. 22(1), pages 91-103, January.
    18. Collins, D. & Poulter, David, 1990. "Estimation of Welfare Gains from the Parasite Control Program 'Wormkill'," 1990 Conference (34th), February 13-15, 1990, Brisbane, Australia 144925, Australian Agricultural and Resource Economics Society.
    19. Unknown, 1985. "Proceedings of an international seminar Manila, Philippines, 27-30 May 1985: Pesticides and Humid Tropical Grain Storage Systems," ACIAR Proceedings Series 134364, Australian Centre for International Agricultural Research.

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