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Distribution of Research Gains in Multistage Production Systems: Further Results
Author(s) -
Holloway Garth J.
Publication year - 1989
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 - 10.2307/1241591
Subject(s) - comparative statics , production (economics) , distribution (mathematics) , downstream (manufacturing) , stage (stratigraphy) , industrial organization , econometrics , computer science , economics , microeconomics , mathematics , operations management , geology , mathematical analysis , paleontology
The “marketing” sector in Muth's single‐stage model is disaggregated into two sequential stages: “processing” and “distribution.” Comparative statics are used to derive necessary and sufficient conditions for farmers to gain from downstream research. The farm benefits are shown to depend crucially on the stage in “marketing” to which research is directed.