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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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  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.
  4. 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.
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  6. Michael Caputo & Quirino Paris, 2005. "An Atemporal Microeconomic Theory and an Empirical Test of Price-Induced Technical Progress," Journal of Productivity Analysis, Springer, vol. 24(3), pages 259-281, November.
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  21. Y. Khatri & C. Thirtle & R. Townsend, 1998. "Testing The Induced Innovation Hypothesis: An Application to UK Agriculture, 1953-90," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(1), pages 1-28.
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Citations

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Cited by:
  1. Roberto ESPOSTI, 2008. "Why Should Regional Agricultural Productivity Growth Converge? Evidence from Italian Regions," Working Papers 319, 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. 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.
  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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