Intellectual Property Rights and Crop-Improving R&D under Adaptive Destruction, June 2007

This paper studies how the strength of intellectual property rights (IPRs) affects investments in biological innovations when the value of an innovation is stochastically reduced to zero because of the evolution of pest resistance. We frame the problem as a research and development (R&D) investment game in a duopoly model of sequential innovation. We characterize the incentives to invest in R&D under two competing IPR regimes, which differ in their treatment of the follow-on innovations that become necessary because of pest adaptation. Depending on the magnitude of the R&D cost, ex ante firms might prefer an intellectual property regime with or without a “research exemption” provision. The study of the welfare function that also accounts for benefit spillovers to consumers—which is possible analytically under some parametric conditions, and numerically otherwise—shows that the ranking of the two IPR regimes depends critically on the extent of the R&D cost.

Evaluation of Safety Treatments for Roadside Culverts: TR-517, April 24, 2009

Roadside cross-drainage culverts have been found to impact vehicle accident injury levels. Designers have commonly used three safety treatments to protect errant drivers from culvert accidents. These treatments have included: culvert extension, guardrail installation and grating. In order to define which safety treatment is the most appropriate, benefit-cost analysis has used accident cost reduction to estimate societal gains earned by using any safety treatment. The purpose of this study was to estimate accident costs for a wide range of roadway and roadside characteristics so that designers can calculate benefit/cost ratios for culvert safety treatment options under any particular scenario. This study began with conducting a parametric study in order to find variables which have significant impact on accident cost changes. The study proceeded with highway scenario modeling which included scenarios with different values for combinations of roadway and roadside variables. These variables were chosen based upon findings from the parametric study and their values were assigned based upon highway classification. This study shows that the use of different culvert safety treatments should be flexible to roadway and roadside characteristics. It also shows that culvert extension and grating were the safety treatments found to produce the lowest accident costs for all highway scenarios modeled. Therefore, it is believed that the expanded adoption of culvert extension and culvert grates can improve overall highway safety.

Generation of Simulated Daily Precipitation and Air and Soil Temperatures, January 2000

This paper describes a maximum likelihood method using historical weather data to estimate a parametric model of daily precipitation and maximum and minimum air temperatures. Parameter estimates are reported for Brookings, SD, and Boone, IA, to illustrate the procedure. The use of this parametric model to generate stochastic time series of daily weather is then summarized. A soil temperature model is described that determines daily average, maximum, and minimum soil temperatures based on air temperatures and precipitation, following a lagged process due to soil heat storage and other factors.