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Technology Adoption and Agricultural Price Policy

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  • Tracy Miller
  • George Tolley

Abstract

Market interventions such as price supports or fertilizer subsidies can lead to gains from speeding up adoption of new technologies, but the policies distort resource allocation. A framework is developed for optimizing policies in light of the adoption-allocation trade off. Based on adoption coefficients and production parameters from third world agriculture, levels and duration of policies are estimated. Sensitivity analyses are performed. Gains are small at best and may be zero or negative in view of farmer costs of adjustment and deadweight losses from taxes.

Suggested Citation

  • Tracy Miller & George Tolley, 1989. "Technology Adoption and Agricultural Price Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 847-857.
  • Handle: RePEc:oup:ajagec:v:71:y:1989:i:4:p:847-857.
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    File URL: http://hdl.handle.net/10.2307/1242662
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    Cited by:

    1. Foster, William E. & Babcock, Bruce A., 1993. "Commodity Policy, Price Incentives, And The Growth In Per-Acre Yields," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(01), July.
    2. Avila-Santamaria, Jorge J. & Useche, Maria P., 2016. "Urea Subsidies and the Decision to Allocate Land to a New Fertilizing Technology: Ex-ante Analysis in Ecuador," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229851, Southern Agricultural Economics Association.
    3. Michael Harris & Alan Lloyd, 1991. "The Returns to Agricultural Research and the Underinvestment Hypothesis - A Survey," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 24(3), pages 16-27.

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