There are a growing number of studies that estimate the economic returns to public sector agricultural research. The estimated rates of return from these studies should be an important input into public sector decisionmaking on the allocation of federal and state funds to agricultural research. However, there have been few attempts to develop and fit empirical models that explain resources allocated to agricultural experiment station research. Some work has been done by Peterson (1969), Guttman (1978), and by us in an earlier paper (Huffman and Miranowski).