Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research

19 Pages Posted: 24 Mar 2020

See all articles by Alan McCunn

Alan McCunn

Pioneer Hi-Bred International, Inc.; Iowa State University - Department of Economics

Wallace E. Huffman

Iowa State University - Department of Economics; University of Kiel - Department of Food Economics and Consumption Studies

Date Written: May 2000

Abstract

State crop, livestock,and aggregate agricultural total factor productivity (TFP) data, 1950–82, are examined for evidence of convergence to a single TFP level (σ‐convergence) or to a steady state rate of growth (β‐ or conditional convergence). Our empirical results do not support σ‐convergence but do support β‐convergence. The rate of β ‐convergence is variable and depends on research and development (R…D) spillins from other states,private R…D, and farmers' schooling. The finding of strong positive interstate spillover effects implies that independent state planning of agricultural research is inefficient and cooperation across states boundaries including establishment of new political jurisdictions for financing public agricultural research can enhance efficiency.

Keywords: growth, convergence, productivity, research and development, spillins, public research, agriculture, states, D240, O330, Q110

Suggested Citation

McCunn, Alan and Huffman, Wallace E., Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research (May 2000). American Journal of Agricultural Economics, Vol. 82, Issue 2, pp. 370-388, 2000, Available at SSRN: https://ssrn.com/abstract=3557451 or http://dx.doi.org/10.1111/0002-9092.00032

Alan McCunn (Contact Author)

Pioneer Hi-Bred International, Inc.

Des Moines, IA
United States

Iowa State University - Department of Economics

260 Heady Hall
Ames, IA 50011
United States

Wallace E. Huffman

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States
515-294-6359 (Phone)
515-294-0221 (Fax)

University of Kiel - Department of Food Economics and Consumption Studies

Olshausenstrasse 40
24098 Kiel, 24098
Germany

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