Evaluating the Returns to Postharvest Research in the Florida Citrus‐Processing Subsector

Widely used econometric techniques for evaluation of returns to research are often limited to macrolevel analysis because the data required are either unavailable or difficult to measure at the micro, or subsector, level. A translog cost function and corresponding share equations are estimated in order to measure the returns to postharvest Florida citrus‐processing research. Estimation of this system also allows computation of input substitution elasticities and evaluation of the effects of research and development on an input's share in total cost. It is shown that expenditures allocated to citrus‐processing research have a high rate of return.