Determinants of the Demand for State Agricultural Experiment Station Resources: A Demand-System Approach

This paper presents new econometric evidence on state government’s demand for resources to support local agricultural experiment station research.  The econometric model consists of a complete-demand system covering four major resource sources, and it is fitted to annual observations on 48 contiguous states, 1970 to 1999.  These results show that forces of total SAES budget size, national ranking of agricultural college and university programs, state demographics, and state’s agricultural-output composition impact a state government’s demand for resources for state agricultural experiment stations.