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R&D Lags in Economic Models

Author

Listed:
  • Wang, Shanchao
  • Alston, Julian M.
  • Pardey, Philip G.
Abstract
Quite different R&D lag structures predominate in studies of agricultural R&D compared with studies of R&D in other industries, and compared with studies of economic growth more broadly. Here we compare the main models and their implications using long-run data for U.S. agriculture. We reject the models predominantly used in studies of economic growth and industrial R&D both on prior grounds and using various statistical tests. The preferred model is a 50-year gamma lag distribution model. The estimated elasticity of MFP with respect to the knowledge stock is 0.28 and the implied marginal benefit-cost ratio is 23:1.

Suggested Citation

  • Wang, Shanchao & Alston, Julian M. & Pardey, Philip G., 2023. "R&D Lags in Economic Models," Staff Papers 330085, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:330085
    DOI: 10.22004/ag.econ.330085
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    References listed on IDEAS

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    More about this item

    Keywords

    Agricultural and Food Policy; Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods;
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