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Simple Nonparametric Tests of Technological Change: Theory and Application to U.S. Agriculture

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  • Ziv Bar-Shira
  • Israel Finkelshtain

Abstract

Several nonparametric tests of technological change are proposed conditional on alternative maintained behavioral assumptions. The tests are simple as they require verification of axioms via binary comparisons that are analogous to those of the revealed preference theory. Our model allows a broad interpretation of technological changes, yet trivial rationalization of the data with either profit-maximization or cost-minimization behavior is excluded. The tests are applied to study the U.S. aggregate agricultural data, supporting the hypotheses of rankable and neutral Technological Variations. Copyright 1999, Oxford University Press.

Suggested Citation

  • Ziv Bar-Shira & Israel Finkelshtain, 1999. "Simple Nonparametric Tests of Technological Change: Theory and Application to U.S. Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 850-864.
  • Handle: RePEc:oup:ajagec:v:81:y:1999:i:4:p:850-864
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    File URL: http://hdl.handle.net/10.2307/1244329
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    Cited by:

    1. Anderson, John D. & Thompson, W. Michael, II & Ibendahl, Gregory A. & Laughlin, David H., 2006. "The Effects of Changing Technology: The Impacts of a Changing Cost Structure on Land Tenure Arrangements in the Mississippi Delta, 1996 - 2004," 2006 Annual meeting, July 23-26, Long Beach, CA 21178, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Aldaz, Natalia & Millán, Joaquín, 2002. "An Inter-Country Comparison of Agricultural Productivity with Intertemporal DEA," Efficiency Series Papers 2002/09, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    3. Natalia Aldaz & Joaquín A. Millán, 2003. "A Comparison of Agricultural Productivity in the European Union Regions," ERSA conference papers ersa03p223, European Regional Science Association.
    4. Ibendahl, Gregory A. & Anderson, John D. & Thompson, W. Michael, II & Hudson, Darren, 2007. "The Impacts of GM Seed Technology on Cotton: Cost of Production in Mississippi, 1996 - 2005," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34856, Southern Agricultural Economics Association.
    5. Mundlak, Yair, 1999. "Production and Supply (Revised)," Working Papers 232819, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
    6. Aldaz, Natalia & Millan, Joaquin A., 2003. "Analisis Malmquist y DEA intertermporal de las agriculturas de la Union Europea," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 3(06).
    7. Mundlak, Yair, 1999. "Production and Supply (Revised)," Working Papers 232819, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
    8. Joaquín Millán & Natalia Aldaz, 2004. "Efficiency and Technical Change in Intertemporal Intersectoral DEA," Journal of Productivity Analysis, Springer, vol. 21(1), pages 7-23, January.

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