Price-induced technical progress in Italian agriculture

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). This 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. The quadratic function has desirable properties with respect to the splined variable, i.e., a more flexible treatment of exogenous technical change. Results provide evidence in favour of the price-induced innovation in Italian agriculture from 1951 to 1991.


Issue Date:
2008
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/207799
Published in:
Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Volume 89, Issue 4
Page range:
5-28

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