ANALYSIS OF RETURNS TO AGRICULTURAL RESEARCH ON WHEAT AND WHEAT PRODUCTIVITY IN THE GREAT PLAINS, 1966 TO 1980 (DIVISIA, MULTILATERAL PRODUCTIVITY INDEXES, COBB-DOUGLAS PRODUCTION FUNCTION, RESEARCH, EXTENSION EXPENDITURES, SPILLOVER EFFECTS)

This study attempts to evaluate returns to agricultural research on wheat in the Great Plains over the years 1966 through 1980. Additionally, the study constructs multifactor Divisia wheat productivity indices and multilateral wheat productivity indices.;Computation of internal rate of return, which indicates the impact of research on wheat production, is based on a production function in which expenditure on wheat research is an independent variable. The popular Cobb-Douglas production function is used here. Measuring wheat productivity over time involves computation of productivity measures utilizing multifactor Divisia productivity index. Multilateral productivity measurements are computed using translogarithmic superlative index numbers. Both multifactor Divisia index as well as translog superlative index numbers are obtained from translog aggregator functions.;Long-run marginal product of wheat research is calculated to be ;These estimates not only compare favorably with the estimates of other researchers and those for other agricultural commodities, but also are substantially large in relation to return to most other conventional investments. In other words, investment in wheat research has shown to be highly beneficial and would warrant continued investment.;The Great Plains region of the United States consists of the following states: Colorado, Kansas, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, and Wyoming which make up the area of this study.;Although research on wheat has shown to be productive with a large marginal internal rate of return, wheat productivity in the Great Plains had fallen during the study period. As measured by multifactor Divisia indices productivity had declined at an average rate of 2.46 percent per year from 1966 to 1980. This was also true of each of the Great Plains' states excepting Kansas which had a marginal productivity gain of less than one percent per annum.;According to multilateral wheat productivity comparisons, Kansas wheat was more productive than that of South Dakota, Oklahoma, Texas, and Montana, while North Dakota and Nebraska showed higher wheat productivity than Kansas during the period 1966-1980.