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Induced Innovation in American Agriculture: A Reconsideration

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Author Info
Olmstead, Alan L
Rhode, Paul

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Abstract

This paper investigates the role of induced innovation in the development of American agriculture from 1880 to 1980. The induced innovation hypothesis, most closely associated with the work of Yujiro Hayami and Vernon W. Ruttan, argues that successful economies develop technologies in accordance with market price signals to loosen constraints on growth imposed by factor scarcities. The analysis employing new state and regional level data fails to find support fo r their hypothesis. This paper suggests that many of the fundamental generalizations about American agricultural development need to be considered and redirects attention to the role of settlement, changi ng crop patterns, and biological investments in explaining changes in factor utilization. Copyright 1993 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 101 (1993)
Issue (Month): 1 (February)
Pages: 100-118
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Handle: RePEc:ucp:jpolec:v:101:y:1993:i:1:p:100-118

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  1. Hrubovcak, James & Vasavada, Utpal & Aldy, Joseph, 1999. "Green Technologies for a More Sustainable Agriculture," Agricultural Information Bulletins 33721, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  2. Mupondwa, Edmund K., 2005. "Induced Technological Change in Canadian Agriculture Field Crops - Canola and Wheat: 1926-2003," 2005 Annual meeting, July 24-27, Providence, RI 19333, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  3. Mundlak, Yair, 2003. "Economic Growth: Lessons From Two Centuries Of American Agriculture," Discussion Papers 14986, Hebrew University of Jerusalem, Department of Agricultural Economics and Management. [Downloadable!]
    Other versions:
  4. Shumway, C. Richard & Liu, Yucan, 2006. "Induced Innovation in the Agricultural Sector: Evidence From a State Panel," 2006 Annual meeting, July 23-26, Long Beach, CA 21089, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Roberto Esposti & Pierpaolo Pierani, 2008. "Price-induced technical progress in Italian agriculture," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 89(4), pages 5-28. [Downloadable!]
    Other versions:
  6. David Zilberman & Xuemei Liu & David Roland-Holst & David Sunding, 2004. "The economics of climate change in agriculture," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 9(4), pages 365-382, October. [Downloadable!] (restricted)
  7. Graff, Gregory & Roland-Holst, David & Zilberman, David, 2005. "Biotechnology and Poverty Reduction in Developing Countries," Working Papers RP2005/27, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  8. Alston, Julian M. & Chalfant, James A. & Pardey, Philip G., 1993. "Structural Adjustment In Oecd Agriculture: Government Policies And Technical Change," Working Papers 14473, University of Minnesota, Center for International Food and Agricultural Policy. [Downloadable!]
  9. Ruttan, Vernon W., 1996. "Sources Of Technical Change: Induced Innovation, Evolutionary Theory And Path Dependence," Bulletins 12974, University of Minnesota, Economic Development Center. [Downloadable!]
  10. Liu, Qinghua & Shumway, C. Richard, 2003. "Induced Innovation Tests On Western American Agriculture: A Cointegration Analysis," 2003 Annual meeting, July 27-30, Montreal, Canada 22237, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  11. Luis Lanteri, 2005. "Crecimiento y la paradoja de la productividad: Una estimación en la forma de state-space con componentes no observables para el sector agropecuario argentino, 1955-2003," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 20(1), pages 53-78. [Downloadable!]
  12. Yucan Liu & C. Richard Shumway, 2008. "Induced Innovation and Marginal Cost of New Technology," Working Papers 2008-6, School of Economic Sciences, Washington State University. [Downloadable!]
  13. Ruttan, Vernon W., 2002. "Productivity Growth In World Agriculture: Sources And Constraints," Staff Papers 14176, University of Minnesota, Department of Applied Economics. [Downloadable!]
  14. Wang, Honglin & Reardon, Thomas, 2008. "Social Learning and Parameter Uncertainty in Irreversible Investment----Evidence from Greenhouse Adoption in Northern China," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6310, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  15. Yucan Liu & C. Richard Shumway, 2008. "Induced Innovation in U.S. Agriculture: Time-series, Direct Econometric, and Nonparametric Tests," Working Papers 2008-3, School of Economic Sciences, Washington State University. [Downloadable!]
  16. Benson, Aaron & Shumway, C. Richard, 2005. "Induced Innovation or a Paradox of Environmental Regulation?," 2005 Annual meeting, July 24-27, Providence, RI 19450, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  17. Conradie, Beatrice & Piesse, Jenny & Thirtle, Colin, 2009. "What is the appropriate level of aggregation for productivity indices? Comparing district, regional and national measures," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(1), March. [Downloadable!]
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