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Resistance to technology and trade between areas

  • Thomas J. Holmes
  • James A. Schmitz

Why are methods of production used in an area when more 'efficient' methods are available? This paper explores a 'resistance to technology' explanation. In particular, the paper attempts to understand why some industries, like the construction industry, have had continued success in blocking new methods, while others have met failure, like the dairy industry's recent attempt to block bST. We develop a model which shows that how easily goods move between areas determines in part the extent of resistance to new methods in an area.

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Paper provided by Federal Reserve Bank of Minneapolis in its series Staff Report with number 184.

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Date of creation: 1994
Date of revision:
Handle: RePEc:fip:fedmsr:184
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  1. Bruce W. Marion & Robert L. Wills, 1990. "A Prospective Assessment of the Impacts of Bovine Somatotropin: A Case Study of Wisconsin," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 326-336.
  2. Sharon M. Oster & John M. Quigley, 1977. "Regulatory Barriers to the Diffusion of Innovation: Some Evidence from Building Codes," Bell Journal of Economics, The RAND Corporation, vol. 8(2), pages 361-377, Autumn.
  3. Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 21-92, Tel Aviv.
  4. Dani Rodrik, 1993. "Trade and Industrial Policy Reform in Developing Countries: A Review of Recent Theory and Evidence," NBER Working Papers 4417, National Bureau of Economic Research, Inc.
  5. Jovanovic, Boyan & Lach, Saul, 1988. "Entry, Exit, And Diffusion With Learning By Doing," Working Papers 88-16, C.V. Starr Center for Applied Economics, New York University.
  6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  7. Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April.
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