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Transactions Costs And Collective Action Approach To Induced Innovation

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  • de Janvry, Alain
  • Fafchamps, Marcel
  • Sadoulet, Elisabeth

Abstract

The neoclassical theory of induced technological innovations, pioneered by Hayami and Ruttan, has shown that changes in relative factor prices help explain the bias of technological change. We show in this paper that, when transactions costs on labor and land exist, structural and political factors are additional important determinants of the bias of technology. The size of the research budget, average farm size, and inequality in the distribution of farm sizes are econometrically shown to all add to relative prices in explaining the bias of technology. A larger research budget is, in particular, observed to lead to a bias more congruent with democratic rules of public budget allocation.

Suggested Citation

  • de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1988. "Transactions Costs And Collective Action Approach To Induced Innovation," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270407, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea88:270407
    DOI: 10.22004/ag.econ.270407
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    References listed on IDEAS

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    1. 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.
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