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New Econometric Evidence on Agricultural Total Factor Productivity Determinants: Impact of Funding Sources

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  • Huffman, Wallace
  • Evenson, Robert E.

Abstract

This paper examines the impact of public and private agricultural research and extension on agricultural total factor productivity at the state level. We test the hypothesis that the composition of agricultural experiment station funding—share of funding from impact of federal competitive grants and contracts and from federal formula and state government appropriations---affects the productivity of public agricultural research using data for the 48 contiguous states over 1970-1999. Our results show not only that sources of funding matter, but that an increase in federal competitive grant funding at the expense of federal formula funding would lower the productivity of public agricultural research. Furthermore, our simulation results show that a few states would most likely gain by a re-allocation of federal formula to grant and contract funding but most would lose.

Suggested Citation

  • Huffman, Wallace & Evenson, Robert E., 2003. "New Econometric Evidence on Agricultural Total Factor Productivity Determinants: Impact of Funding Sources," Staff General Research Papers Archive 11176, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:11176
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    References listed on IDEAS

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    1. Alan McCunn & Wallace E. Huffman, 2000. "Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 370-388.
    2. Wallace E. Huffman & Richard E. Just, 1994. "Funding, Structure, and Management of Public Agricultural Research in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 744-759.
    3. Evenson, Robert E., 2001. "Economic impacts of agricultural research and extension," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 11, pages 573-628, Elsevier.
    4. Yee, J. & Huffman, Wallace E. & Ahearn, M. & Newson, M., 2002. "Sources of Agricultural Productivity Growth at the State Level, 1960-1993," Staff General Research Papers Archive 5331, Iowa State University, Department of Economics.
    5. Zvi Griliches, 1998. "R&D and Productivity: The Econometric Evidence," NBER Books, National Bureau of Economic Research, Inc, number gril98-1.
    6. B. L. Gardner & G. C. Rausser (ed.), 2001. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 1, number 2.
    7. Kevin J. Stiroh & Dale W. Jorgenson, 2000. "U.S. Economic Growth at the Industry Level," American Economic Review, American Economic Association, vol. 90(2), pages 161-167, May.
    8. Huffman, Wallace E. & Evenson, Robert E., 1993. "Science for Agriculture: A Long Term Perspective," Staff General Research Papers Archive 10997, Iowa State University, Department of Economics.
    9. Albert K. A. Acquaye & Julian M. Alston & Philip G. Pardey, 2003. "Post-War Productivity Patterns in U.S. Agriculture: Influences of Aggregation Procedures in a State-Level Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 59-80.
    10. B. L. Gardner & G. C. Rausser (ed.), 2001. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 1, number 1.
    11. Huffman, Wallace & Evenson, Robert E., 2003. "Determinants of the Demand for State Agricultural Experiment Station Resources: A Demand-System Approach," Staff General Research Papers Archive 11175, Iowa State University, Department of Economics.
    12. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45, National Bureau of Economic Research, Inc.
    13. Alston, Julian M. & Craig, Barbara J. & Pardey, Philip G., 1998. "Dynamics in the creation and depreciation of knowledge, and the returns to research:," EPTD discussion papers 35, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Moss, Charles B., 2006. "Valuing State-Level Funding for Research: Results for Florida," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(1), pages 1-15, April.
    2. Huffman, Wallace & Evenson, Robert E., 2003. "Determinants of the Demand for State Agricultural Experiment Station Resources: A Demand-System Approach," Staff General Research Papers Archive 11175, Iowa State University, Department of Economics.
    3. Prajna Paramita Mishra & Ayan Kumar Pujari, 2008. "Impact of Mining on Agricultural Productivity," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 9(2), pages 337-350, September.
    4. Evenson, Robert E. & Rosegrant, Mark W. & Msangi, Siwa & Sulser, Timothy B., 2006. "Green Revolution Counterfactuals," 2006 Annual meeting, July 23-26, Long Beach, CA 21363, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Jeremy D. Foltz & Bradford L. Barham, 2009. "The Productivity Effects of Extension Appointments in Land-Grant Colleges," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 712-733, December.
    6. Ukoha, O.O & Okoye, B.C & Emetu, J, 2010. "Analysis of the Determinants of Total Factor Productivity among Small-Holder Cassava Farmers in Ohafia L.G.A of Abia State," MPRA Paper 26125, University Library of Munich, Germany.
    7. Chan, Ming Ming & Shi, Qun & Tyers, Rodney, 2005. "Global Demographic Change and Economic Performance: Implications for Agricultural Markets," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137808, Australian Agricultural and Resource Economics Society.

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    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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