Impacts of Public Research Expenditures on Agricultural Value-Added in the U.S. and the Northeast

Abstract

This paper illustrates differences in estimated returns to public agricultural research investments for the U.S. and the Northeast when value-added (VA) as opposed to gross production (GP) functions are estimated. Commodity groups considered are dairy, poultry, other livestock, and cash grains. Sizable differences are evident in returns estimated with VA as opposed to GP functions, with the VA estimates generally being larger. Cash grains research yields the largest returns at the margin. Dairy research is more productive in the Northeast than the rest of the country.