IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/31222.html
   My bibliography  Save this article

Price-Conditional Technology

Author

Listed:
  • Fulginiti, Lilyan E.

Abstract

Economics theorists for years have considered the possibility that the direction of technical change is altered by changes in relative prices. Prices also have been identified as one of the determinants of technical change through innovation. This article extends the theory of the firm to cover situations in which the firms' technology set is conditional on expected prices. The basic idea is to distinguish between "market prices," or the prices that guide the firm's choices subject to the technology that is in place, and "normal prices," the prices conditioning the choice of technology. A "generalized" price effect is obtained that included the traditional price effect as well as the technical change effect of price changes, and an example is presented.

Suggested Citation

  • Fulginiti, Lilyan E., 1994. "Price-Conditional Technology," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(1), pages 1-12, July.
    • Handle: RePEc:ags:jlaare:31222
    DOI: 10.22004/ag.econ.31222
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/31222/files/19010161.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.31222?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fulginiti, Lilyan E & Perrin, Richard K, 1993. "Prices and Productivity in Agriculture," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 471-482, August.
    2. Basmann, R. L. & Hayes, K. J. & Slottje, D. J. & Molina, D. J., 1987. "A new method for measuring technological change," Economics Letters, Elsevier, vol. 25(4), pages 329-333.
    3. Basmann, R L & Molina, D J & Slottje, D J, 1983. "Budget Constraint Prices as Preference Changing Parameters of Generalized Fechner-Thurstone Direct Utility Functions," American Economic Review, American Economic Association, vol. 73(3), pages 411-413, June.
    4. Peterson, Willis L., 1987. "International Land Quality Indexes," Staff Papers 13877, University of Minnesota, Department of Applied Economics.
    5. Chris Fawson & C. Richard Shumway & Robert L. Basmann, 1990. "Agricultural Production Technologies with Systematic and Stochastic Technical Change," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 182-199.
    6. R. E. Lucas, 1967. "Tests of a Capital-Theoretic Model of Technological Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(2), pages 175-189.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Esposti, Roberto & Pierani, Pierpaolo, 2008. "Price-induced technical progress in Italian agriculture," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 89(4).
    2. Paris, Quirino & Caputo, Michael R., 1995. "The Rhetoric Of Duality," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(1), pages 1-20, July.
    3. Lilyan E. Fulginiti & Richard K. Perrin, 1999. "Have Price Policies Damaged Ldc Agricultural Productivity?," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 469-475, October.
    4. Riaz, Khalid, 1994. "Food consumption patterns in rural Pakistan," ISU General Staff Papers 1994010108000011501, Iowa State University, Department of Economics.
    5. Ludo Peeters & Yves Surry, 2000. "Incorporating Price-Induced Innovation in a Symmetric Generalised McFadden Cost Function with Several Outputs," Journal of Productivity Analysis, Springer, vol. 14(1), pages 53-70, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fulginiti, Lilyan E & Perrin, Richard K, 1993. "Prices and Productivity in Agriculture," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 471-482, August.
    2. Basmann, Robert L. & McAleer, Michael & Slottje, Daniel, 2007. "Patent activity and technical change," Journal of Econometrics, Elsevier, vol. 139(2), pages 355-375, August.
    3. William A. Barnett & Ikuyasu Usui, 2007. "The Theoretical Regularity Properties of the Normalized Quadratic Consumer Demand Model," International Symposia in Economic Theory and Econometrics, in: Functional Structure Inference, pages 107-127, Emerald Group Publishing Limited.
    4. Keith Wiebe & Meredith J. Soule & Clare Narrod & Vincent E. Breneman, 2003. "Resource Quality and Agricultural Productivity: A Multi-Country Comparison," Chapters, in: Keith Wiebe (ed.), Land Quality, Agricultural Productivity, and Food Security, chapter 7, pages 147-165, Edward Elgar Publishing.
    5. Wiebe, Keith D., 2003. "Linking Land Quality, Agricultural Productivity, And Food Security," Agricultural Economic Reports 34073, United States Department of Agriculture, Economic Research Service.
    6. Czap, Hans J., 2004. "Technological Spillovers -- The Argument For Trade?," 2004 Annual meeting, August 1-4, Denver, CO 20017, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Alene, Arega D., 2009. "Productivity growth and the effects of R&D in African agriculture," 2009 Conference, August 16-22, 2009, Beijing, China 51436, International Association of Agricultural Economists.
    8. Barnett, William A. & Serletis, Apostolos, 2008. "Consumer preferences and demand systems," Journal of Econometrics, Elsevier, vol. 147(2), pages 210-224, December.
    9. Malte Reimers & Stephan Klasen, 2013. "Revisiting the Role of Education for Agricultural Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 131-152.
    10. Marco Alfò & Lorenzo Carbonari & Giovanni Trovato, 2020. "On the Effects of Taxation on Growth: an Empirical Assessment," CEIS Research Paper 480, Tor Vergata University, CEIS, revised 08 May 2020.
    11. Zhang, Wei & Alston, Julian M., 2013. "Factor Substitution and Technical Change in the U.S. Dairy Processing and Manufacturing Industry," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150707, Agricultural and Applied Economics Association.
    12. Zúniga-González, Carlos Alberto, 2011. "Total Factor Productivity Growth in Agriculture: A Malmquist Index Analysis of 14 Countries, 1979-2008," Conference Papers 114036, National Autonomous University of Nicaragua, León (Unan-León), Researching Center for Applied Economics (RCAE).
    13. Lilyan E. Fulginiti & Richard K. Perrin, 1999. "Have Price Policies Damaged Ldc Agricultural Productivity?," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 469-475, October.
    14. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980–2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, January.
    15. Yaguchi, Yu, 1994. "A panel data approach to the intercountry metaproduction function," ISU General Staff Papers 1994010108000018181, Iowa State University, Department of Economics.
    16. Antônio Salazar P. Brandão & Will J. Martin, 1993. "Implications of agricultural trade liberalization for the developing countries," Agricultural Economics, International Association of Agricultural Economists, vol. 8(4), pages 313-343, June.
    17. Arega D. Alene, 2010. "Productivity growth and the effects of R&D in African agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 223-238, May.
    18. Dalton, Thomas R. & Coats, R. Morris & Asrabadi, Badiollah R., 2005. "Renewable resources, property-rights regimes and endogenous growth," Ecological Economics, Elsevier, vol. 52(1), pages 31-41, January.
    19. Ruttan, Vernon W., 1996. "Sources Of Technical Change: Induced Innovation, Evolutionary Theory And Path Dependence," Bulletins 12974, University of Minnesota, Economic Development Center.
    20. Mounir Belloumi & Mohamed Salah Matoussi, 2008. "Measuring Agricultural Productivity Growth in MENA Countries," Working Papers 416, Economic Research Forum, revised 06 Jan 2008.

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:31222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.