Induced Innovation in U.S. Agriculture: Time-series, Direct Econometric, and Nonparametric Tests
AbstractThe hypothesis of induced innovation is tested for U.S. agriculture using a high-quality state-level panel data set and three disparate testing techniques—time series, direct econometric, and nonparametric. We find little support for the hypothesis. That conclusion is robust across testing techniques. However, as with all empirical tests of this hypothesis conducted to date, ours focus only on the demand side of the hypothesis. The hypothesis could have been rejected simply because the marginal cost of developing and implementing input-saving technologies for the relatively expensive inputs is greater than for the relatively cheap inputs. Copyright 2009, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 91 (2009)
Issue (Month): 1 ()
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Other versions of this item:
- Yucan Liu & C. Richard Shumway, 2008. "Induced Innovation in U.S. Agriculture: Time-series, Direct Econometric, and Nonparametric Tests," Working Papers 2008-3, School of Economic Sciences, Washington State University.
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