Revisiting rates of return to agricultural R&D investment

This study proposes the use of partial least squares to determine the key parameters of the perpetual inventory method model of capital stock as a new approach to calculate research and development (R&D) knowledge stocks and R&D elasticities. This approach avoids most of the major problems encounter...

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Main Authors: Nin-Pratt, Alejandro, Magalhaes, Eduardo
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2018
Subjects:
Online Access:https://hdl.handle.net/10568/145696
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author Nin-Pratt, Alejandro
Magalhaes, Eduardo
author_browse Magalhaes, Eduardo
Nin-Pratt, Alejandro
author_facet Nin-Pratt, Alejandro
Magalhaes, Eduardo
author_sort Nin-Pratt, Alejandro
collection Repository of Agricultural Research Outputs (CGSpace)
description This study proposes the use of partial least squares to determine the key parameters of the perpetual inventory method model of capital stock as a new approach to calculate research and development (R&D) knowledge stocks and R&D elasticities. This approach avoids most of the major problems encountered in the literature that lead to obtaining very high and implausible rates of return to agricultural R&D...Using this approach, we obtain an average R&D elasticity for low- and middle-income (LM) countries of 0.23 and an average rate of return to R&D investment of 6.0 percent, bigger than the average discount rate of 4.2 percent for these countries. Results show that 60 percent of LM countries in our sample are underinvesting in agricultural R&D, as they can get higher returns by investing in this activity than in activities that return the social discount rate.
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spelling CGSpace1456962025-11-06T07:21:40Z Revisiting rates of return to agricultural R&D investment Nin-Pratt, Alejandro Magalhaes, Eduardo models investment agricultural research research agriculture elasticities productivity returns knowledge This study proposes the use of partial least squares to determine the key parameters of the perpetual inventory method model of capital stock as a new approach to calculate research and development (R&D) knowledge stocks and R&D elasticities. This approach avoids most of the major problems encountered in the literature that lead to obtaining very high and implausible rates of return to agricultural R&D...Using this approach, we obtain an average R&D elasticity for low- and middle-income (LM) countries of 0.23 and an average rate of return to R&D investment of 6.0 percent, bigger than the average discount rate of 4.2 percent for these countries. Results show that 60 percent of LM countries in our sample are underinvesting in agricultural R&D, as they can get higher returns by investing in this activity than in activities that return the social discount rate. 2018-04-12 2024-06-21T09:04:53Z 2024-06-21T09:04:53Z Working Paper https://hdl.handle.net/10568/145696 en https://doi.org/10.2499/p15738coll2.134985 Open Access application/pdf International Food Policy Research Institute Nin-Pratt, Alejandro; and Magalhaes, Eduardo. 2018. Revisiting rates of return to agricultural R&D investment. IFPRI Discussion Paper 1718. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/145696
spellingShingle models
investment
agricultural research
research
agriculture
elasticities
productivity
returns
knowledge
Nin-Pratt, Alejandro
Magalhaes, Eduardo
Revisiting rates of return to agricultural R&D investment
title Revisiting rates of return to agricultural R&D investment
title_full Revisiting rates of return to agricultural R&D investment
title_fullStr Revisiting rates of return to agricultural R&D investment
title_full_unstemmed Revisiting rates of return to agricultural R&D investment
title_short Revisiting rates of return to agricultural R&D investment
title_sort revisiting rates of return to agricultural r d investment
topic models
investment
agricultural research
research
agriculture
elasticities
productivity
returns
knowledge
url https://hdl.handle.net/10568/145696
work_keys_str_mv AT ninprattalejandro revisitingratesofreturntoagriculturalrdinvestment
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