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Price-Induced Technical Progress in Italian Agriculture

  • Roberto ESPOSTI

    ()

    (Universita' Politecnica delle Marche, Dipartimento di Economia)

  • Pierpaolo PIERANI

    ([n.a.])

In this paper we aim at investigating the price-induced innovation hypothesis in Italian agriculture. We generalize the framework of analysis proposed by Peeters and Surry (2000). The generalization includes a short-run specification of the dual technology as well as a quadratic spline in a time variable. We argue that the temporary equilibrium setting gives a more realistic representation of how relative prices may steer innovation and variable input bias over time, while the quadratic function has desirable properties with respect the splined variable, i.e., a more flexible treatment of exogenous technical change.;Results provide evidence in favour of price-induced innovation in Italian agriculture over the years 1951 to 1991.

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Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 275.

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Length: 32
Date of creation: Nov 2006
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Handle: RePEc:anc:wpaper:275
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  1. Esposti, Roberto & Pierani, Pierpaolo, 2000. "Modelling technical change in Italian agriculture: a latent variable approach," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 22(3), April.
  2. Gatien, M.A. & Lasserre, P. & Ouellette, P., 1987. "The Measurement of Productivity and Scarcity Rent: the Case of Asbestos in Canada," Cahiers de recherche 8747, Universite de Montreal, Departement de sciences economiques.
  3. Thirtle, C. & Townsend, R. & Zyl, J. van, 1998. "Testing the induced innovation hypothesis: an error correction model of South African agriculture," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
  4. Hayami, Yujiro & Ruttan, Vernon W., 1969. "Factor Prices And Technical Change In Agricultural Development: The United States And Japan, 1880-1960," Staff Papers 14172, University of Minnesota, Department of Applied Economics.
  5. Roberto Esposti & Pierpaolo Pierani, 2006. "Price, private demand and optimal provision of public R&D investment: An application to Italian agriculture, 1960–1995," Empirical Economics, Springer, vol. 31(3), pages 699-715, September.
  6. Y. Khatri & C. Thirtle & R. Townsend, 1998. "Testing The Induced Innovation Hypothesis: An Application to UK Agriculture, 1953-90," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(1), pages 1-28.
  7. Thirtle, Colin G, 1985. "The Microeconomic Approach to Induced Innovation: A Reformulation of the Hayami and Ruttan Model," The Manchester School of Economic & Social Studies, University of Manchester, vol. 53(3), pages 263-79, September.
  8. Pierani, Pierpaolo & Rizzi, Pier Luigi, 2003. "Technology and efficiency in a panel of Italian dairy farms: an SGM restricted cost function approach," Agricultural Economics, Blackwell, vol. 29(2), pages 195-209, October.
  9. Olmstead, Alan L & Rhode, Paul, 1993. "Induced Innovation in American Agriculture: A Reconsideration," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 100-118, February.
  10. Lilyan E. Fulginiti, 1993. "Price-Conditional Technology," Center for Agricultural and Rural Development (CARD) Publications 93-wp116, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  11. Colin G. Thirtle & David E. Schimmelpfennig & Robert E Townsend, 2002. "Induced Innovation in United States Agriculture, 1880–1990: Time Series Tests and an Error Correction Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 598-614.
  12. Thirtle, C. & Townsend, R. & van Zyl, J., 1998. "Testing the induced innovation hypothesis: an error correction model of South African agriculture," Agricultural Economics, Blackwell, vol. 19(1-2), pages 145-157, September.
  13. Paris, Quirino & Caputo, Michael R., 1995. "The Rhetoric Of Duality," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(01), July.
  14. Roberto ESPOSTI & Pierpaolo PIERANI, 2002. "Public R&D Investment and Cost Structure in Italian Agriculture 1960-1995," Working Papers 176, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  15. Caputo, Michael R. & Paris, Quirino, 2004. "An Atemporal Microeconomic Theory And An Empirical Test Of Price-Induced Technical Progress," Working Papers 11992, University of California, Davis, Department of Agricultural and Resource Economics.
  16. Clark, J. Stephen & Klein, Kurt K. & Kerr, William A., 2003. "Fundamental And Induced Biases In Technological Change In Central Canadian Agriculture," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25874, International Association of Agricultural Economists.
  17. Huffman, Wallace E. & Ball, E. & Gopinath, M. & Somwaru, A., 2002. "Public R&D and Infrastructure Policies: Effects on Cost of Midwestern Agriculture," Staff General Research Papers 10431, Iowa State University, Department of Economics.
  18. Quirino Paris & Michael R. Caputo, 2001. "Price-induced technical progress and comparative statics," Economics Bulletin, AccessEcon, vol. 15(8), pages 1-8.
  19. Ludo Peeters & Yves Surry, 2000. "Incorporating Price-Induced Innovation in a Symmetric Generalised McFadden Cost Function with Several Outputs," Journal of Productivity Analysis, Springer, vol. 14(1), pages 53-70, July.
  20. George Mergos & Giannis Karagiannis, 1997. "Sources Of Productivity Change Under Temporary Equilibrium And Application To Greek Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 313-329.
  21. Fernando S. Machado, 1995. "Testing The Induced Innovation Hypothesis Using Cointegration Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(3), pages 349-360.
  22. Kohli, Ulrich, 1993. "A Symmetric Normalized Quadratic GNP Function and the U.S. Demand for Imports and Supply of Exports," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 243-55, February.
  23. Morrison, Catherine J, 1988. "Quasi-Fixed Inputs in U.S. and Japanese Manufacturing: A Generalized Leontief Restricted Cost Function Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 275-87, May.
  24. Sunding, David & Zilberman, David, 2001. "The agricultural innovation process: Research and technology adoption in a changing agricultural sector," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 4, pages 207-261 Elsevier.
  25. Diewert, W E & Wales, T J, 1992. "Quadratic Spline Models for Producer's Supply and Demand Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 705-22, August.
  26. A Oude Lansink & E Silva & S Stefanou, 2000. "Decomposing productivity growth allowing efficiency gains and price-induced technical progress," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(4), pages 497-518, December.
  27. Kawagoe, Toshihiko & Otsuka, Keijiro & Hayami, Yujiro, 1986. "Induced Bias of Technical Change in Agriculture: The United States and Japan, 1880-1980," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 523-44, June.
  28. Roberto Esposti & Pierpaolo Pierani, 2003. "Building the Knowledge Stock: Lags, Depreciation, and Uncertainty in R&D Investment and Link with Productivity Growth," Journal of Productivity Analysis, Springer, vol. 19(1), pages 33-58, January.
  29. Pierani, Pierpaolo & Rizzi, Pier Luigi, 2003. "Technology and efficiency in a panel of Italian dairy farms: an SGM restricted cost function approach," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 29(2), October.
  30. Roberto ESPOSTI & Pierpaolo PIERANI, 2001. "Building the Knowledge Stock: Lags, Depreciation and Uncertainty in Agricultural R&D," Working Papers 145, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
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