The economic analysis of agricultural research

Several economic analyses of agricultural research projects have been published in which the ‘surplus’ concept has been used to estimate welfare changes. It is suggested that this procedure does not provide a welfare indicator suitable as a basis for action. The analytical procedure can be re-worked purely in terms of resource usages. However, the welj-known hybrid-maize data of Griliches are used to show that ‘technical assessment’ can often provide, much more simply, as adequate an approximation as more elaborate methods. The importance for agricultural research planning of considerations other than the efficient use of resources is stressed.