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Induced Technological Change in Canadian Agriculture Field Crops - Canola and Wheat: 1926-2003

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  • Mupondwa, Edmund K.
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    Abstract

    A tractable two-stage constant elasticity of substitution (CES) production function is applied to disaggregated western Canadian wheat and canola data for 1926-2003 to investigate the induced innovation hypothesis. Time series properties of the data are analyzed using cointegration and error correction to assess causality in differentiating between technological change and factor substitution. The results provide empirical support for the hypothesis with respect to prairie wheat and canola production.

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    File URL: http://purl.umn.edu/19333
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19333.

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    Date of creation: 2005
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    Handle: RePEc:ags:aaea05:19333

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    Keywords: Disaggregated data; induced innovation; stationarity; unit roots; cointegration; vector error correction model; Research and Development/Tech Change/Emerging Technologies;

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    1. Kawagoe, Toshihiko & Otsuka, Keijiro & Hayami, Yujiro, 1986. "Induced Bias of Technical Change in Agriculture: The United States and Japan, 1880-1980," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 523-44, June.
    2. Kaneda, Hiromitzu, 1982. "Specification of production functions for analyzing technical change and factor inputs in agricultural development," Journal of Development Economics, Elsevier, vol. 11(1), pages 97-108, August.
    3. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
    4. Binswanger, Hans P., 1973. "The Measurement Of Technical Change Biases With Many Factors Of Production," Staff Papers 14205, University of Minnesota, Department of Applied Economics.
    5. 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.
    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, University of Manchester, vol. 53(3), pages 263-79, September.
    7. Clark, J. Stephen & Klein, Kurt K. & Kerr, William 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.
    8. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
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