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Price-Induced Technological Change in Italian Agriculture: An SGM Restricted Cost Function Approach (1951-91)

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Author Info
Esposti, Roberto
Pierani, Pierpaolo

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Abstract

This paper aims at investigating the price-induced innovation hypothesis in Italian agriculture over the years 1951 to 1991. Price-inducement hypothesis is analysed and tested within the framework proposed by Peeters and Surry (2000). The major difference is the short-run specification of the dual technology. Distinguishing between variable and quasi-fixed inputs allows both a more realistic representation of how relative prices may affect innovation and input use over time and a detailed decomposition of the relevant biases in input use. Results provide evidence in favour of price-inducement innovation in Italian agriculture.

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Publisher Info
Paper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24662.

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Date of creation: 2005
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Handle: RePEc:ags:eaae05:24662

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Related research
Keywords: induced innovation; Italian agriculture; SGM restricted cost function; Research and Development/Tech Change/Emerging Technologies; Q16;

References listed on IDEAS
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  1. Roberto ESPOSTI & Pierpaolo PIERANI, 2002. "Public R&D Investment and Cost Structure in Italian Agriculture 1960-1995," Working Papers 176, Universita' Politecnica delle Marche (I), Dipartimento di Economia. [Downloadable!]
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  2. Pierani, Pierpaolo & Rizzi, Pier Luigi, 2003. "Technology and efficiency in a panel of Italian dairy farms: an SGM restricted cost function approach," Agricultural Economics, Blackwell, vol. 29(2), pages 195-209, October. [Downloadable!] (restricted)
  3. Esposti, Roberto & Pierani, Pierpaolo, 2000. "Modelling technical change in Italian agriculture: a latent variable approach," Agricultural Economics, Blackwell, vol. 22(3), pages 261-270, April. [Downloadable!] (restricted)
  4. Roberto ESPOSTI & Pierpaolo PIERANI, 2001. "Building the Knowledge Stock: Lags, Depreciation and Uncertainty in Agricultural R&D," Working Papers 145, Universita' Politecnica delle Marche (I), Dipartimento di Economia. [Downloadable!]
  5. Esposti, Roberto, 2002. "Public agricultural R&D design and technological spill-ins: A dynamic model," Research Policy, Elsevier, vol. 31(5), pages 693-717, July. [Downloadable!] (restricted)
  6. Caputo, Michael R. & Paris, Quirino, 2004. "An Atemporal Microeconomic Theory And An Empirical Test Of Price-Induced Technical Progress," Working Papers 11992, University of California, Davis, Department of Agricultural and Resource Economics. [Downloadable!]
  7. Thirtle, C. & Townsend, R. & van Zyl, J., 1998. "Testing the induced innovation hypothesis: an error correction model of South African agriculture," Agricultural Economics, Blackwell, vol. 19(1-2), pages 145-157, September. [Downloadable!] (restricted)
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