The Economic impact of public agricultural research and development in the United States

Authors


Corresponding author. Tel.: (307) 766-3401; fax: (307) 766-5544.

E-mail address: mander60@uwyo.edu (M.A. Andersen).

Abstract

In this article, we examine the relationship between public investments in agricultural research and development and the productivity-enhancing benefits they generate. Knowledge productivity functions are estimated for U.S. agriculture using data on multifactor productivity and public knowledge stocks. We examine the time-series properties of the data and compare alternative econometric estimation procedures. The results are used to calculate economic performance measures such as internal rates of return and benefit-cost ratios. The real rate of return to public investments in agricultural research and development in the United States is in the range of 8–10% per annum.

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