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Commodity R&D and Promotion

Published online by Cambridge University Press:  28 April 2015

Timothy J. Richards  and
Luis Padilla
Timothy J. Richards
Affiliation:
National Food and Agricultural Policy Project, Morrison School of Agribusiness and Resource Management, Arizona State University, Mesa AZ
Luis Padilla
Affiliation:
National Food and Agricultural Policy Project, Morrison School of Agribusiness and Resource Management, Arizona State University, Mesa AZ
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Abstract

Considerable evidence exists of high returns to public and private investment in commodity research and development programs. This study investigates the potential returns to product research, development, and marketing in a dynamic commodity-market model. Theoretical hypotheses derived from the solution to this model are tested in an empirical example of Washington apples. Estimation results show that, despite significant spillovers to research and promotion expenditure in this industry, there is nonetheless considerable latitude to increase annual sales.

Keywords

advertisingcommodityinnovationoptimal controlPoisson modelresearch and developmentL15M37Q13Q16
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 34 , Issue 3 , December 2002 , pp. 401 - 415
Copyright
Copyright © Southern Agricultural Economics Association 2002

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