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Resistance to technology and trade between areas

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Author Info
Thomas J. Holmes
James A. Schmitz, Jr.

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Abstract

Why are methods of production used in an area when more 'efficient' methods are available? This paper explores a 'resistance to technology' explanation. In particular, the paper attempts to understand why some industries, like the construction industry, have had continued success in blocking new methods, while others have met failure, like the dairy industry's recent attempt to block bST. We develop a model which shows that how easily goods move between areas determines in part the extent of resistance to new methods in an area.

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Paper provided by Federal Reserve Bank of Minneapolis in its series Staff Report with number 184.

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Date of creation: 1994
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Handle: RePEc:fip:fedmsr:184

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Keywords: Technology;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jovanovic, Boyan & Lach, Saul, 1989. "Entry, Exit, and Diffusion with Learning by Doing," American Economic Review, American Economic Association, vol. 79(4), pages 690-99, September. [Downloadable!] (restricted)
    Other versions:
  2. Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April. [Downloadable!] (restricted)
  3. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-50, September. [Downloadable!] (restricted)
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  4. Dani Rodrik, 1993. "Trade and Industrial Policy Reform in Developing Countries: A Review of Recent Theory and Evidence," NBER Working Papers 4417, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Sharon M. Oster & John M. Quigley, 1977. "Regulatory Barriers to the Diffusion of Innovation: Some Evidence from Building Codes," Bell Journal of Economics, The RAND Corporation, vol. 8(2), pages 361-377, Autumn. [Downloadable!] (restricted)
  6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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This page was last updated on 2009-10-29.

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