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Valuing State-Level Funding for Research: Results for Florida

Published online by Cambridge University Press:  28 April 2015

Charles B. Moss
Charles B. Moss*
Affiliation:
Department at the University of Florida, Gainesville, FL
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Abstract

This study analyzes the value of agricultural research to Florida by examining the effect of research spending on agricultural productivity, as measured by a total factor productivity index, and profitability, as measured by net farm income. Results suggest that research expenditures do increase agricultural productivity in the state. However, agricultural productivity does not affect net cash income. Further, the economic rents to the productivity gains do not accrue to land values. Instead, the economic value of research innovations accrues more to consumers than to producers. Thus, consumers are the ultimate beneficiaries of agricultural research in Florida, thereby justifying public funding for agricultural research.

Keywords

cointegrationresearch and developmentstate expenditurestotal factor productivityH40H72Q16
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 38 , Issue 1 , April 2006 , pp. 169 - 183
Copyright
Copyright © Southern Agricultural Economics Association 2006

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