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The Economic Incidence of R&D and Promotion Investments in the Australian Beef Industry

Author

Listed:
  • X. Zhao
  • J.D. Mullen
  • G.R. Griffith
  • R.R. Piggott
  • W.E. Griffiths
Abstract
The issue of the relative returns to farmers from R&D and promotion is examined using a multi-sectoral equilibrium displacement model of the Australian beef industry. Total economic surplus changes and their distributions among various industry groups resulting from 1% cost reductions in various farm and off-farm sectors, and from 1% price premiums from domestic and export market promotion, are estimated. The results are consistent with previous studies in showing that in general, the share of total benefits to farmers is larger from on-farm research than from most off-farm research, and is larger from most types of research than from domestic promotion. The share of total benefits to farmers is larger from export promotion than from off-farm research, and from domestic promotion. The net returns from the different cost-reduction or demand-enhancing scenarios depend on the costs of achieving them.

Suggested Citation

  • X. Zhao & J.D. Mullen & G.R. Griffith & R.R. Piggott & W.E. Griffiths, 2002. "The Economic Incidence of R&D and Promotion Investments in the Australian Beef Industry," Monash Econometrics and Business Statistics Working Papers 16/02, Monash University, Department of Econometrics and Business Statistics.
    • Handle: RePEc:msh:ebswps:2002-16
    as

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    File URL: http://www.buseco.monash.edu.au/ebs/pubs/wpapers/2002/wp16-02.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Economics of R&D; promotion; beef industry; equilibrium displacement modelling.;
    All these keywords.

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General
    • D60 - Microeconomics - - Welfare Economics - - - General

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