Modeling Directions of Technical Change in Agricultural Sector
AbstractThis paper reviews the economic models explaining the directions of technical change. The application to agricultural sector is also explored. The induced innovation model extensively used in agricultural development studies has left unexplained stylized facts in several empirical evidences. This leads to the motivation of this paper to find an alternative model. While the induced innovation relies heavily on the change of relative factor price on biased technical change, the directed technical change model developed by Acemoglu (2002, 2007, 2009) endogenizes investment on research and explains the incentives of technology monopolists. The directed technical change model is developed and applied to agricultural sector. Given a hypothetical situation of increasing relative scarce agricultural labor, the model provides insights of which the policy direction for technical change in agricultural sector can be expected.
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Bibliographic InfoPaper provided by Kasetsart University, Department of Agricultural and Resource Economics in its series Working Papers with number 201101.
Length: 36 pages
Date of creation: Jun 2011
Date of revision:
Publication status: Published in ARE Working Paper No. 2554/1 (June 2011)
directed technical change; induced innovation;
Find related papers by JEL classification:
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-07-02 (Agricultural Economics)
- NEP-ALL-2011-07-02 (All new papers)
- NEP-EFF-2011-07-02 (Efficiency & Productivity)
- NEP-INO-2011-07-02 (Innovation)
- NEP-SEA-2011-07-02 (South East Asia)
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