AgEcon Search

AgEcon Search >
       University of Minnesota >
          Department of Applied Economics >
             Staff Papers >

Please use this identifier to cite or link to this item: http://purl.umn.edu/135018

Title: Recalibrating the Reported Rates of Return to Food and Agricultural R&D
Authors: Rao, Xudong
Hurley, Terrance M.
Pardey, Philip G.
Issue Date: 2012-09
Series/Report no.: Staff Paper
P12-8
Abstract: Prices of basic food staples and feed crops have soared in recent years, renewing concerns about the ability of global food supplies to meet the projected growth in aggregate demand. Notwithstanding these concerns, and apparently at odds with a vast body of economic evidence reporting exceptionally high rates of return to investments in agricultural R&D, growth in public R&D spending for food and agriculture has slowed worldwide, especially in rich countries. Left unchecked, the consequent slowdown in agricultural productivity will push many more people into hunger and undercut economic growth, especially in the many economies worldwide still heavily reliant on agriculture. The observed R&D spending behavior is consistent with a determination that the rate of return evidence is implausible. We examine this notion, recalibrate a new, comprehensive compilation of the evidence, and find in favor of a much reduced rate of return to research. Nonetheless, the scaling back of public agricultural R&D spending is not supported from this new economic view of the evidence.
URI: http://purl.umn.edu/135018
Institution/Association: University of Minnesota>Department of Applied Economics>Staff Papers
Total Pages: 32
Collections:Staff Papers

Files in This Item:

File Description SizeFormat
RaoEtAl2012_v2.pdf783KbPDFView/Open
Recommend this item

All items in AgEcon Search are protected by copyright.

 

 

Brought to you by the University of Minnesota Department of Applied Economics and the University of Minnesota Libraries with cooperation from the Agricultural and Applied Economics Association.

All papers are in Acrobat (.pdf) format. Get Adobe Reader

Contact Us

Powered by: