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Price-induced technical progress in Italian agriculture

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  • Roberto Esposti

    ()
    (Department of Economics, Università Politecnica delle Marche, Piazza Martelli, 8, 60121 Ancona, Italy)

  • Pierpaolo Pierani

    (Department of Economic Policy, Finance and Development, University of Siena Italy)

Abstract

In this paper we aim at investigating the price-induced innovation hypothesis in Italian agriculture. We generalize the framework of analysis proposed by Peeters and Surry (2000). This generalization includes a short-run specification of the dual technology as well as a quadratic spline in a time variable. We argue that the temporary equilibrium setting gives a more realistic representation of how relative prices may steer innovation and variable input bias over time. The quadratic function has desirable properties with respect to the splined variable, i.e., a more flexible treatment of exogenous technical change. Results provide evidence in favour of the price-induced innovation in Italian agriculture from 1951 to 1991.

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Bibliographic Info

Article provided by INRA Department of Economics in its journal Review of Agricultural and Environmental Studies.

Volume (Year): 89 (2008)
Issue (Month): 4 ()
Pages: 5-28

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Handle: RePEc:rae:jourae:v:89:y:2008:i:4:p:5-28

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Keywords: Induced innovation ; Italian agriculture ; SGM Restricted Cost Function;

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References

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  1. George Mergos & Giannis Karagiannis, 1997. "Sources Of Productivity Change Under Temporary Equilibrium And Application To Greek Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 313-329.
  2. Roberto Esposti & Pierpaolo Pierani, 2006. "Price, private demand and optimal provision of public R&D investment: An application to Italian agriculture, 1960–1995," Empirical Economics, Springer, vol. 31(3), pages 699-715, September.
  3. Esposti, Roberto & Pierani, Pierpaolo, 2000. "Modelling technical change in Italian agriculture: a latent variable approach," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 22(3), April.
  4. Pierani, Pierpaolo & Rizzi, Pier Luigi, 2003. "Technology and efficiency in a panel of Italian dairy farms: an SGM restricted cost function approach," Agricultural Economics, Blackwell, vol. 29(2), pages 195-209, October.
  5. Roberto Esposti & Pierpaolo Pierani, 2003. "Building the Knowledge Stock: Lags, Depreciation, and Uncertainty in R&D Investment and Link with Productivity Growth," Journal of Productivity Analysis, Springer, vol. 19(1), pages 33-58, January.
  6. Esposti, Roberto & Pierani, Pierpaolo, 2000. "Modelling technical change in Italian agriculture: a latent variable approach," Agricultural Economics, Blackwell, vol. 22(3), pages 261-270, April.
  7. Lilyan E. Fulginiti, 1993. "Price-Conditional Technology," Center for Agricultural and Rural Development (CARD) Publications 93-wp116, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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Citations

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Cited by:
  1. Ugo FRATESI, 2010. "The National and International Effects;of Regional Policy Choices: Agglomeration Economies, Peripherality and Territorial Characteristics," Working Papers 344, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  2. Luca RICCETTI, 2010. "Minimum Tracking Error Volatility," Working Papers 340, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  3. Esposti, Roberto, 2008. "Why Should Regional Agricultural Productivity Growth Converge? Evidence from Italian Regions," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43955, European Association of Agricultural Economists.
  4. Fabio FIORILLO & Agnese SACCHI, 2010. "I Want to Free-ride. An Opportunistic View on Decentralization Versus Centralization Problem," Working Papers 346, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

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