@article{Voon:172714,
      recid = {172714},
      author = {Voon, Jan P. and Edwards, Geoff W.},
      title = {The Calculation of returns to research In distorted  markets: Comment},
      journal = {Agricultural Economics: The Journal of the International  Association of Agricultural Economists},
      address = {1991-01},
      number = {968-2016-75439},
      pages = {8},
      year = {1991},
      abstract = {In a recent article, Oehmke reported that a high internal  rate of return for investment in research when
the  interaction between research and price policy costs was  disregarded could become very low or even
negative when the  effects of research on the costs of price policy were  considered. In this paper, the social
returns from research  in the presence of the price policies considered by Oehmke  are reexamined using
a simple geometric approach. The  analysis suggests that an output subsidy in a small  importing economy,
an output subsidy in a closed economy,  and a target price in a large exporting economy will -  on
Oehmke's assumptions - cause only small reductions in  the internal rate of return from investment in
research.  This implies that the apparent underinvestment by  governments in agricultural research cannot
be explained  away by a large upward bias, known to governments, in  measured rates of return due to
failure to account for  interactions between research and the costs of price policy  measures.},
      url = {http://ageconsearch.umn.edu/record/172714},
      doi = {https://doi.org/10.22004/ag.econ.172714},
}