AN ATEMPORAL MICROECONOMIC THEORY AND AN EMPIRICAL TEST OF PRICE-INDUCED TECHNICAL PROGRESS

An exhaustive comparative statics analysis of a general price taking cost-minimizing model of the firm operating under the influence of price-induced technical progress is carried out from a dual vista. The resulting refutable implications are observable and thus amenable to empirical verification, and take on the form of a symmetric and negative semidefinite matrix. Using data from individual cotton gins in California’s San Joaquin Valley, we empirically test the complete set of implications of the price-induced technical progress theory using both classical and Bayesian statistical procedures. We find that the data are fully consistent with the atemporal, costminimizing, price-induced microeconomic theory of technical progress.


Issue Date:
2004
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/11992
Total Pages:
32
Series Statement:
Working Paper 04-009




 Record created 2017-04-01, last modified 2017-04-04

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