Title

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

Authors

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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