Induced Innovation and Marginal Cost of New Technology
AbstractThe hypothesis of induced innovation has been empirically tested in many ways, using a wide variety of data and test periods for many industries in many countries. However, each test has maintained the hypothesis that the relative marginal cost of developing and implementing technologies that save one input is the same as for any other input. Lacking data on development and implementation costs of input-saving technologies, we develop and use a nonparametric procedure to estimate relative differences required for technical change in U.S. agriculture to be consistent with the induced innovation hypothesis.
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Bibliographic InfoPaper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2008-6.
Length: 13 pages
Date of creation: Jun 2008
Date of revision:
induced innovation; marginal cost; nonparametric;
Other versions of this item:
- Liu, Yucan & Shumway, C. Richard, 2009. "Induced innovation and marginal cost of new technology," Economics Letters, Elsevier, vol. 105(1), pages 106-109, October.
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-01-03 (Agricultural Economics)
- NEP-ALL-2009-01-03 (All new papers)
- NEP-INO-2009-01-03 (Innovation)
- NEP-KNM-2009-01-03 (Knowledge Management & Knowledge Economy)
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