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Price-induced technical progress in Italian agriculture

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Author Info
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)

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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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Publisher 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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Related research
Keywords: Induced innovation ; Italian agriculture ; SGM Restricted Cost Function;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Roberto ESPOSTI & Pierpaolo PIERANI, 2002. "Public R&D Investment and Cost Structure in Italian Agriculture 1960-1995," Working Papers 176, Universita' Politecnica delle Marche (I), Dipartimento di Economia. [Downloadable!]
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  2. Fernando S. Machado, 1995. "Testing The Induced Innovation Hypothesis Using Cointegration Analysis," Journal of Agricultural Economics, Blackwell Publishing, vol. 46(3), pages 349-360. [Downloadable!] (restricted)
  3. Kohli, Ulrich, 1993. "A Symmetric Normalized Quadratic GNP Function and the U.S. Demand for Imports and Supply of Exports," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 243-55, February. [Downloadable!] (restricted)
  4. Clark, J. Stephen & Klein, K.K. & Kerr, W.A., 2003. "Fundamental And Induced Biases In Technological Change In Central Canadian Agriculture," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25874, International Association of Agricultural Economists. [Downloadable!]
  5. Sunding, David & Zilberman, David, 2001. "The agricultural innovation process: Research and technology adoption in a changing agricultural sector," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 4, pages 207-261 Elsevier. [Downloadable!] (restricted)
  6. Thirtle, Colin G, 1985. "The Microeconomic Approach to Induced Innovation: A Reformulation of the Hayami and Ruttan Model," The Manchester School of Economic & Social Studies, Blackwell Publishing, vol. 53(3), pages 263-79, September.
  7. Lasserre, Pierre & Ouellette, Pierre, 1991. "The measurement of productivity and scarcity rents : The case of asbestos in Canada," Journal of Econometrics, Elsevier, vol. 48(3), pages 287-312, June. [Downloadable!] (restricted)
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  8. Olmstead, Alan L & Rhode, Paul, 1993. "Induced Innovation in American Agriculture: A Reconsideration," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 100-118, February. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
  10. 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. [Downloadable!] (restricted)
  11. Thirtle, Colin G & Schimmelpfennig, David E & Townsend, Robert E, 2002. " Induced Innovation in United States Agriculture, 1880-1990: Time Series Tests and an Error Correction Model," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 84(3), pages 598-614, August. [Downloadable!] (restricted)
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