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The Returns to Agricultural Research and the Underinvestment Hypothesis ‐ A Survey

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  • Michael Harris
  • Alan Lloyd

Abstract

Economic research on agricultural research commenced with cost‐benefit and production function analyses in the 1950s and 1960s, which consistently showed very high social rates of return. Attention next focused on market failure in the funding of research (the ‘underinvestment hypothesis’), and on some political economy and public choice issues. This article surveys the area, by asking the following questions: How much research to do? What research to do? Who gains and loses? What can be said concerning the role of government?

Suggested Citation

  • 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.
    • Handle: RePEc:bla:ausecr:v:24:y:1991:i:3:p:16-27
    DOI: 10.1111/j.1467-8462.1991.tb00394.x
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    2. Cox, Thomas L. & Mullen, John D. & Hu, Wensheng, 1997. "Nonparametric measures of the impact of public research expenditures on Australian broadacre agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(3), pages 1-28.
    3. Roberto Esposti, 2003. "Public R&D investment and cost structure in Italian agriculture, 1960--1995," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(4), pages 509-537, December.
    4. Mullen, John D. & Cox, Thomas L., 1995. "The Returns From Research In Australian Broadacre Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(2), pages 1-24, August.
    5. Mullen, John D., 1996. "Why Economists and Scientists Find Cooperation Costly," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(02), pages 1-9, August.
    6. Cox, Thomas L. & Mullen, John D. & Hu, Wensheng, 1996. "Nonparametric Measures Of The Impacts Of Public Research Expenditures On Australian Broadacre Agriculture: Preliminary Results," Staff Papers 12656, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    7. Ruhul A. Salim & Nazrul Islam, 2010. "Exploring the impact of R&D and climate change on agricultural productivity growth: the case of Western Australia ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 561-582, October.
    8. THOMAS COX & John Mullen & Wensheng Hu, 1996. "Nonparametric Measures of the Impacts of Public Research Expenditures on Australian Broadacre Agriculture: Preliminary Results," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 399, Wisconsin-Madison Agricultural and Applied Economics Department.
    9. Esposti, Roberto & Pierani, Pierpaolo, 2002. "Public R&D Investment and Cost Behaviour in Italian Agriculture: 1960-1995," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24974, European Association of Agricultural Economists.
    10. 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.
    11. Kym Anderson, 2022. "Structural transformation in growing open economies: Australia’s experience," Departmental Working Papers 2022-13, The Australian National University, Arndt-Corden Department of Economics.
    12. Esposti, Roberto & Pierani, Pierpaolo, 2003. "Public R&D Investment From Private And Social Perspective. An Application To Italian Agriculture, 1960-1995," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25876, International Association of Agricultural Economists.

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