Demand and Supply of Induced Innovation: An Application to U.S. Agriculture Report as inadecuate




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The hypothesis of induced innovation (Hicks, 1932) is tested for U.S. agriculture using a high-quality state-level panel data set and three disparate testing techniques ¨C time series, econometric, and nonparametric. The conclusion of little support for the hypothesis is robust across testing techniques. However, each test maintains the hypothesis that the relative marginal cost of developing and implementing technologies that save one input is the same as for any other input. Lacking data on development and implementation costs of input-saving technologies, we use nonparametric procedures to estimate relative differences required for technological change to be consistent with the induced innovation hypothesis.

Subject(s): Research and Development/Tech Change/Emerging Technologies

Issue Date: 2007

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/9844

Total Pages: 51

Series Statement: Selected Paper 117877

Record appears in: American Agricultural Economics Association (AAEA) > 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon





Author: Liu, Yucan ; Shumway, C. Richard

Source: http://ageconsearch.umn.edu/record/9844?ln=en



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