Profits and Politics: Coordinating Technology Adoption in Agriculture

Rohini Pande ()
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Rohini Pande: Economic Growth Center, Yale University

Working Papers from Economic Growth Center, Yale University

Abstract: This paper examines the political economy of coordination in a simple two-sector model in which individuals' choice of agricultural technology affects industrialization. We demonstrate the existence of multiple equilibria; the economy is either characterized by the use of a traditional agricultural technology and a low level of industrialization or the use of a mechanized technology and a high level of industrialization. Relative to the traditional technology, the mechanized technology increases output but leaves some population groups worse off. We show that the distributional implications of choosing the mechanized technology restrict the possibility of Pareto-improving coordination by an elected policy-maker, even when we allow for income redistribution.

Keywords: Industrialization; Choice of Technology; Government Policy (search for similar items in EconPapers)
JEL-codes: H10 O14 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2005-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:egc:wpaper:922

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