Research payoffs from quality improvement : the case of backfat depth in pigs
Journal of Agricultural Economics
Wiley-Blackwell Publishing Ltd.
Closed-market models embodying alternative specifications of supply, demand and substitutability conditions are developed to measure the economic benefits from a research-caused improvement in quality. The models are applied to the estimation of the economic benefits from reducing backfat depth in Australian pork. A major finding is that the Australian pig industry has the potential to derive a gross research benefit of about $7 million per annum from a 10% reduction in backfat thickness in pigs. Under each of the chosen specifications, the larger share of this gain accrues to pig producers. There could be additional social gains as a result of health benefits not incorporated in consumers' valuations.
Copyright © 1991, Wiley Blackwell. All rights reserved. Access to external full text or publisher's version may require subscription.
Voon, J. P., & Edwards, G. W. (1991). Research payoffs from quality improvement: The case of backfat depth in pigs. Journal of Agricultural Economics, 42(1), 66-76. doi: 10.1111/j.1477-9552.1991.tb00333.x