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The purpose of this report is to determine a statistical estimate of the returns to agricultural research at the Maine Agricultural Experiment Station during the period 1950 through 1986. The approach taken here follows most of the recent literature regarding the estimation of returns to agricultural research, by estimating an econometric production function and deriving an internal rate of return on both research and extension expenditures within the state of Maine. This estimate is derived using ridge regression techniques. The approach taken here differs somewhat from much of the returns to research literature in that it focuses on a single state, while most other work in this area considers the country as a whole. In addition the estimates here take explicit account of benefits accruing from outside of the state.
Maine Agricultural Experiment Station
agricultural research, economic aspects
Leiby, J.D., and G. Adams. 1989. The estimation of the returns to agricultural research and extension in Maine: 1951-1985. Maine Agricultural Experiment Station Technical Bulletin 135.