The Diffusion of New Technologies: Evidence from the Electric Utility Industry
This article investigates the effect of firm size and ownership structure on technology adoption decisions using data on the electric utility industry. We argue that traditional models of technology diffusion may be subject to sample selectivity biases that overstate the effect of firm size on adoption probabilities. By extending conventional hazard rate models to use information on both adoption and nonadoption decisions, we differentiate between firms' opportunities for adoption and their underlying adoption propensities. The results suggest that large firms and investor-owned electric utilities are likely to adopt new technologies earlier than are their smaller and publicly owned counterparts. Moreover, the selection biases from conventional statistical models may overstate size effects and understate ownership and factor cost effects by as much as a factor of two.
Volume (Year): 21 (1990)
Issue (Month): 3 (Autumn)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
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.:
- V. Kerry Smith, 1974. "The Implications of Regulation for Induced Technical Change," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 623-632, Autumn.
- Stoneman, P L, 1985. "Technological Diffusion : The Viewpoint of Economic Theory," The Warwick Economics Research Paper Series (TWERPS) 270, University of Warwick, Department of Economics.
- Benvignati, Anita M, 1982. "Interfirm Adoption of Capital-Goods Innovations," The Review of Economics and Statistics, MIT Press, vol. 64(2), pages 330-335, May.
- Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-1266, September.
When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:21:y:1990:i:autumn:p:354-373. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.