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The Impact of Regulation on Technical Change

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  • Gerald Granderson
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    Abstract

    This paper examines the impact of regulation on a firm’s choice of innovations and on the rate of technical change. Using a 1977–1987 panel of 20 U.S. interstate natural gas pipeline companies, I find that regulation led firms to adopt a technology that augmented (i) noncapital more than capital and (ii) noncapital more than the technology the standard (unregulated) firm would have adopted. I also find that, while technical regress occurred over the sample period, regulation led to a small decline in the rate of technical change and a small increase in production cost on average.

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    Bibliographic Info

    Article provided by Southern Economic Association in its journal Southern Economic Journal.

    Volume (Year): 65 (1999)
    Issue (Month): 4 (April)
    Pages: 807-822

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    Handle: RePEc:sej:ancoec:v:65:4:y:1999:p:807-822

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    Web page: http://www.southerneconomic.org/
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    Cited by:
    1. Gregory Price, 2008. "NEA Presidential Address: Black Economists of the World You Cite!!," The Review of Black Political Economy, Springer, vol. 35(1), pages 1-12, March.
    2. Mark Frank, 2003. "An Empirical Analysis of Electricity Regulation on Technical Change in Texas," Review of Industrial Organization, Springer, vol. 22(4), pages 313-331, June.

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