The impact of public and private R&D on farmers' production decisions: econometric evidence for Midwestern states, 1960-2004

dc.contributor.author Fan, Xing
dc.contributor.author Huffman, Wallace
dc.contributor.author Huffman, Wallace
dc.contributor.author Schuring, Jessica
dc.contributor.department Economics
dc.date 2018-02-17T17:45:10.000
dc.date.accessioned 2020-06-30T02:11:56Z
dc.date.available 2020-06-30T02:11:56Z
dc.date.issued 2010-04-24
dc.description.abstract <p>The objective of this paper is to identify the impact of public and private agricultural research on multi-output multi-input profit maximizing decisions of Midwestern farmers. The main hypothesis is that investments in public and private R&D shift outward the supply curves for crop The objective of this paper is to identify the impact of public and private agricultural research on multi-output multi-input profit maximizing decisions of Midwestern farmers. The main hypothesis is that investments in public and private R&D shift outward the supply curves for crop and livestock outputs and, in some cases, reduce the demand for inputs. The study uses state aggregate data for eight Midwestern states over 1960-2004. The own-price elasticities of demand for all inputs are shown to be negative, being larger for agricultural chemicals and energy that for farm capital services, labor and other materials. Additional public agricultural research increases the supply of crop and livestock outputs but biases revenue shares toward crop output. Additional private R&D as in adoption of GM corn varieties shifts outward the supply curves for crops and livestock outputs but biases revenue shares towards crop output. In contrast, an increase in the adoption of GM soybean varieties increases livestock output and deceases crop output. Public agricultural research reduces the demand for capital services and energy and increases the demand for agricultural chemicals, other materials, and labor. An increase in the availability of GM soybean varieties increases the demand for capital services, agricultural chemicals and other materials and has weak negative effects on the demand for labor and energy. GM corn variety adoption reduces the demand for energy but other effects are quite small.and livestock outputs and, in some cases, reduce the demand for inputs. The study uses state;aggregate data for eight Midwestern states over 1960-2004. The own-price elasticities of demand for;all inputs are shown to be negative, being larger for agricultural chemicals and energy that for farm;capital services, labor and other materials. Additional public agricultural research increases the;supply of crop and livestock outputs but biases revenue shares toward crop output. Additional;private R&D as in adoption of GM corn varieties shifts outward the supply curves for crops and;livestock outputs but biases revenue shares towards crop output. In contrast, an increase in the;adoption of GM soybean varieties increases livestock output and deceases crop output. Public;agricultural research reduces the demand for capital services and energy and increases the demand;for agricultural chemicals, other materials, and labor. An increase in the availability of GM soybean;varieties increases the demand for capital services, agricultural chemicals and other materials and;has weak negative effects on the demand for labor and energy. GM corn variety adoption reduces;the demand for energy but other effects are quite small.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_workingpapers/129/
dc.identifier.articleid 1128
dc.identifier.contextkey 8689645
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_workingpapers/129
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/22344
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_workingpapers/129/p11646_2010_04_24.pdf|||Fri Jan 14 19:32:47 UTC 2022
dc.subject.disciplines Economics
dc.subject.keywords profit function
dc.subject.keywords Midwest agriculture
dc.subject.keywords public research
dc.subject.keywords technology
dc.subject.keywords GMOs
dc.subject.keywords multiple-inputs multiple output
dc.subject.keywords crops
dc.title The impact of public and private R&D on farmers' production decisions: econometric evidence for Midwestern states, 1960-2004
dc.type article
dc.type.genre working_paper
dspace.entity.type Publication
relation.isAuthorOfPublication d9eff576-b4ca-4da5-942d-c21c96bcb303
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
File
Original bundle
Now showing 1 - 1 of 1
Name:
p11646_2010_04_24.pdf
Size:
451.37 KB
Format:
Adobe Portable Document Format
Description:
Collections