Distribution of Research Gains in Multistage Production Systems: A General Equilibrium Analysis of Wool

George Verikios

No 139920, 2006 Conference (50th), February 8-10, 2006, Sydney, Australia from Australian Agricultural and Resource Economics Society

Abstract: The seminal work of Freebairn, Davis and Edwards (FDE, 1982) showed that in a multistage production system, research that reduces production costs at one stage provides benefits to producers at all stages and to consumers. This work assumed a partial equilibrium environment, while producers operate in general equilibrium. We apply a general equilibrium model to investigate the importance of the economic environment in the distribution of research gains in an extreme example of a multistage production system: wool. Our results do not support FDE’s conclusions with regard to the distribution of benefits to producers across production stages – research in a multistage production system that reduces production costs at one stage will not necessarily provide benefits to producers at all stages.

Keywords: Livestock Production/Industries; Production Economics (search for similar items in EconPapers)
Pages: 30
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/139920/files/2006_verikios.pdf (application/pdf)

Related works:
Working Paper: Distribution of Research Gains in Multistage Production Systems: a General Equilibrium Analysis of Wool (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aare06:139920

DOI: 10.22004/ag.econ.139920

Access Statistics for this paper

More papers in 2006 Conference (50th), February 8-10, 2006, Sydney, Australia from Australian Agricultural and Resource Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().