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What is the Value of Agricultural Economics Research?
Author(s) -
Schimmelpfennig David E.,
Norton George W.
Publication year - 2003
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/1467-8276.00104
Subject(s) - value of information , agriculture , management science , strengths and weaknesses , bayesian probability , set (abstract data type) , value (mathematics) , process (computing) , economics , key (lock) , research policy , simple (philosophy) , computer science , public economics , mathematical economics , political science , artificial intelligence , public administration , ecology , philosophy , computer security , epistemology , machine learning , biology , programming language , operating system
The output of agricultural economics research is information, much of it aimed at designing or improving institutions. Bayesian decision theory and economic surplus analysis have been suggested as possible approaches to evaluate that information. This article takes a critical look at the strengths and weaknesses of combining those approaches for empirical evaluation of agricultural economics research. It presents three case studies, utilizing prior and posterior probabilities elicited from key decision makers. Direct application of the probabilities to a simple set of states and actions is best suited to situations involving a single policy‐making center, or a consensus decision‐making process.