An atemporal microeconomic theory and an empirical test of price-induced technical progress

    Authors

    M. Caputo;Q. Paris

    Comments

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    Abbreviated Journal Title

    J. Prod. Anal.

    Keywords

    price-induced technical progress; comparative statics; TECHNOLOGICAL-PROGRESS; COMPARATIVE STATICS; INDUCED INNOVATION; PRODUCTIVITY; ECONOMICS; MONEY; GOODS; Business; Economics; Social Sciences, Mathematical Methods

    Abstract

    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, cost-minimizing, price-induced microeconomic theory of technical progress.

    Journal Title

    Journal of Productivity Analysis

    Volume

    24

    Issue/Number

    3

    Publication Date

    1-1-2005

    Document Type

    Article

    Language

    English

    First Page

    259

    Last Page

    281

    WOS Identifier

    WOS:000232276700002

    ISSN

    0895-562X

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