Journal of Agricultural and Resource Economics
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Soybean producers participate in a checkoff program to support research and market development activities. Checkoff funds are used for both yield-enhancing and cost-reducing production research. Using USDA cost-of-production data and a regional modeling framework with greater model pretest support than several alternatives, national marginal returns to producers are estimated to higher for checkoff-supported research than for publicly supported soybean research. They are also higher for checkoff cost reducing than for checkoff yield-enhancing research.
Because so much agricultural policy analysis utilizes estimates of supply and demand elasticities, it is crucial to obtain the most reliable estimates possible. Where reliability cannot be adequately assessed, the sensitivity of elasticities to equally plausible a priori specifications should at least be ascertained. In this article, the sensitivity of U.S. output supply and input demand elasticities to choice of functional form. Considerable sensitivity is found to choice of functional form. Although most frequently used, the translog is generally the outlier and is the least preferred among the alternatives.
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