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Investing in Research and Education versus Commodity Programs: Implications for Agricultural Productivity

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  • Shiva Makki
  • Luther Tweeten
  • Cameron Thraen

Abstract

The long-term impact of research, education, and various government support programs on U.S. agricultural productivity was analyzed using an error correction model. Results indicate that the proposed reduction in commodity program expenditures (e.g. 1996 Farm Bill) is unlikely to reduce agricultural productivity. Results suggest that shifting public funds from commodity programs to education and research would raise U.S. agricultural productivity. Our estimates of long-term rates of return to public research are lower than those from most previous, perhaps due to our improved model specification, but are high enough to justify continued public investments to raise productivity. Copyright Kluwer Academic Publishers 1999

Suggested Citation

  • Shiva Makki & Luther Tweeten & Cameron Thraen, 1999. "Investing in Research and Education versus Commodity Programs: Implications for Agricultural Productivity," Journal of Productivity Analysis, Springer, vol. 12(1), pages 77-94, August.
    • Handle: RePEc:kap:jproda:v:12:y:1999:i:1:p:77-94
    DOI: 10.1023/A:1007855224376
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    9. 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.
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    Cited by:

    1. Julia Hall & Grant M Scobie, 2006. "The Role of R&D in Productivity Growth: The Case of Agriculture in New Zealand: 1927 to 2001," Treasury Working Paper Series 06/01, New Zealand Treasury.
    2. Morrison Paul, Catherine J., 2000. "Productivity And Efficiency In The U.S. Food System, Or, Might Cost Factors Support Increasing Mergers And Concentration?," Working Papers 11983, University of California, Davis, Department of Agricultural and Resource Economics.
    3. Yucan Liu & C. Richard Shumway & Robert Rosenman & Virgil Eldon Ball, 2011. "Productivity growth and convergence in US agriculture: new cointegration panel data results," Applied Economics, Taylor & Francis Journals, vol. 43(1), pages 91-102.
    4. Sarker, Rakhal & Ratnesena, Shashini, 2014. "Revealed Comparative Advantage and Half-A-Century Competitiveness of Canadian Agriculture: A Case Study of Wheat, Beef and Pork Sectors," Working Papers 165675, Canadian Agricultural Trade Policy Research Network.
    5. Waleerat Suphannachart & Peter Warr, 2011. "Research and productivity in Thai agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 35-52, January.
    6. Kelvin Balcombe & Alastair Bailey & Iain Fraser, 2005. "Measuring the impact of R&D on Productivity from a Econometric Time Series Perspective," Journal of Productivity Analysis, Springer, vol. 24(1), pages 49-72, September.
    7. Rakotoarisoa, Manitra A., 2011. "The impact of agricultural policy distortions on the productivity gap: Evidence from rice production," Food Policy, Elsevier, vol. 36(2), pages 147-157, April.
    8. Rakotoarisoa, Manitra A., 2008. "The Impact of Agricultural Policy Distortions on the Productivity Gap: Evidence from the Rice Production," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6154, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Bjerke, Lina, 2016. "Knowledge in agriculture: a micro data assessment of the role of internal and external knowledge in farm productivity in Sweden," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 118(2), pages 1-9, August.
    10. 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.
    11. James Oehmke & David Schimmelpfennig, 2004. "Quantifying Structural Change in U.S. Agriculture: The Case of Research and Productivity," Journal of Productivity Analysis, Springer, vol. 21(3), pages 297-315, May.
    12. Ricardo de Avillez, 2011. "A Detailed Analysis of the Productivity Performance of the Canadian Primary Agriculture Sector," CSLS Research Reports 2011-06, Centre for the Study of Living Standards.
    13. Olson, Kent D. & Vu, Linh, 2009. "Productivity Growth, Technical Efficiency and Technical Change on Minnesota Farms," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49204, Agricultural and Applied Economics Association.

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