ISSN:
1573-0441
Keywords:
Price-induced innovation
;
Factor-using bias
;
Food processing sector
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract A model of price-induced innovation is presented incorporating long-run prices as arguments in the production function serving the role of stimulating firms to seek innovations. The empirical application examines the production structure and technological progress of the U.S. food processing and distribution sector for the period 1948–1991. The empirical model separates scarcity, innovation, and exogenous technical change responses in analyzing the Morishima elasticities for input combinations and multifactor input biases. The results suggest significant structural changes occurring in the food processing and distribution sector since 1980. Focusing on multifactor input bias, results suggest that there are no wide changes in technical change patterns over the last forty years. However, Morishima elasticity results suggest a more varied pattern of technical change between inputs. The price-induced technical progress has a dominant contribution on input decisions compared with the exogenous technical change.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1007807213843
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