Title

An Atemporal Microeconomic Theory And An Empirical Test Of Price-Induced Technical Progress

Keywords

Comparative statics; Price-induced technical progress

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. © 2005 Springer Science+Business Media, Inc.

Publication Date

11-1-2005

Publication Title

Journal of Productivity Analysis

Volume

24

Issue

3

Number of Pages

259-281

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1007/s11123-005-4934-3

Socpus ID

26044443242 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/26044443242

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