Price-induced technical progress in Italian agriculture
AbstractIn 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 InfoArticle provided by INRA Department of Economics in its journal Review of Agricultural and Environmental Studies.
Volume (Year): 89 (2008)
Issue (Month): 4 ()
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Induced innovation ; Italian agriculture ; SGM Restricted Cost Function;
Other versions of this item:
- Roberto ESPOSTI & Pierpaolo PIERANI, 2006. "Price-Induced Technical Progress in Italian Agriculture," Working Papers 275, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
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