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Induced Innovation in the High Rainfall Zone

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  • Martin, John F.
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    Abstract

    The induced innovation hypothesis states that the direction of technical change is determined by changes in relative input prices acting as a "spur to invention". To determine the validity of this hypothesis for the High Rainfall Zone of the Australian sheep industry, technical change biases for five input categories were measured using time series data for the period 1952-53 to 1976-77. These biases were then related to relative changes in the price of these input categories. The biases were measured by the application of a translog cost function model and suggested that, in general, technical change has been biased toward the saving of labour and land, the using of livestock, and neutral in regard to capital, and possibly materials and services. Comparison of the ranking of the measured biases with that of the relative price changes indicated that all results, except those for capital, were in general conformity with the induced innovation hypothesis. Finally, the deficiencies of the model and implications of the results are discussed.

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    File URL: http://purl.umn.edu/12522
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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.

    Volume (Year): 50 (1982)
    Issue (Month): 03 (December)
    Pages:

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    Handle: RePEc:ags:remaae:12522

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    Related research

    Keywords: Research and Development/Tech Change/Emerging Technologies;

    References

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    1. Kennedy, Charles & Thirlwall, A P, 1972. "Technical Progress: A Survey," Economic Journal, Royal Economic Society, vol. 82(325), pages 11-72, March.
    2. Duncan, Ronald C., 1972. "Technological Change In The Arid Zone Of New South Wales," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 16(01), April.
    3. Moses Abramovitz, 1956. "Resource and Output Trends in the United States Since 1870," NBER Books, National Bureau of Economic Research, Inc, number abra56-1.
    4. Moses Abramovitz, 1956. "Resource and Output Trends in the United States Since 1870," NBER Chapters, in: Resource and Output Trends in the United States Since 1870, pages 1-23 National Bureau of Economic Research, Inc.
    5. Vincent, David P., 1977. "Factor Substitution In Australian Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(02), August.
    6. McKay, Lloyd & Lawrence, Denis & Vlastuin, Chris, 1982. "Production Flexibility and Technical Change in Australia's Wheat-Sheep Zone," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(01), April.
    7. Gutman, G.O., 1955. "Investment and Production in Australian Agriculture," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(04), December.
    8. McLean, I W, 1973. "Growth and Technological Change in Agriculture: Victoria 1870-1910," The Economic Record, The Economic Society of Australia, vol. 49(128), pages 560-74, December.
    9. te Kloot, Jack H. & Anderson, Jock R., 1977. "Estimation Of Technological Change In The Pastoral Zone," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 45(04), December.
    10. A. A. L. Powell, 1969. "Productivity Change In Australia: An Overall View," Economic Papers, The Economic Society of Australia, vol. 1(31), pages 18-34, 06.
    11. Peter B. Dixon & David P. Vincent & Alan A. Powell, 1976. "Factor Demand and Product Supply Relations in Australian Agriculture : The CRESH/CRETH Production System," Centre of Policy Studies/IMPACT Centre Working Papers op-08, Victoria University, Centre of Policy Studies/IMPACT Centre.
    12. Lawrence, Denis & McKay, Lloyd, 1980. "Inputs, Outputs And Productivity Change In The Australian Sheep Industry," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(01), April.
    13. McKay, Lloyd & Lawrence, Denis & Vlastuin, Chris, 1980. "Input Demand and Substitution in the Australian Sheep Industry," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 48(02), August.
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