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Supply Shifts and the Size of Research Benefits
Author(s) -
Lindner R. K.,
Jarrett F. G.
Publication year - 1978
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 - 10.2307/1240160
Subject(s) - investment (military) , economics , econometrics , rate of return , agriculture , political science , finance , law , politics , ecology , biology
This article claims to do three things. First, develop a formula for measuring size of research benefits which is generally applicable to all types of supply shift. Second, use this formula to assess the possible error involved in previous studies employing alternative equations. Third, initiate discussion on variables which might influence the type of supply shift. The article concludes that uncritical application of previously developed formulas without regard to the type of supply shift can result in substantial bias in estimates of research benefits. The implication is that calculation of rates of return on agricultural investment may also be severely biased.