AN ATEMPORAL MICROECONOMIC THEORY AND AN EMPIRICAL TEST OF PRICE-INDUCED TECHNICAL PROGRESS

Michael Caputo and Quirino Paris

No 11992, Working Papers from University of California, Davis, Department of Agricultural and Resource Economics

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, costminimizing, price-induced microeconomic theory of technical progress.

Keywords: Research; and; Development/Tech; Change/Emerging; Technologies (search for similar items in EconPapers)
Pages: 32
Date: 2004
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: An Atemporal Microeconomic Theory and an Empirical Test of Price-Induced Technical Progress (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucdavw:11992

DOI: 10.22004/ag.econ.11992

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