A test for complementarities among multiple technologies that avoids the curse of dimensionality

Li Yu (), Terrance Hurley, James Kliebenstein and Peter Orazem

Economics Letters, 2012, vol. 116, issue 3, 354-357

Abstract: We propose a strategy to identify the complementarity or substitutability among technology bundles. Differences between the observed distribution of technology choices can be subjected to statistical tests. Combinations of technologies that occur with greater frequency than would occur under independence are complementary technologies. Combinations that occur with less frequency are substitute technologies. We use the strategy to evaluate multiple technology adoptions on US hog farms. As the number of bundled technologies increases, they are increasingly likely to be complementary with one another, even if subsets are substitutes when viewed in isolation.

Keywords: Technology bundles; Complements; Substitutes; Independence; Hog farms (search for similar items in EconPapers)
JEL-codes: C12 L25 O33 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016517651200119X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: A Test for Complementarities Among Multiple Technologies that Avoids the Curse of Dimensionality (2012)
Working Paper: A test for complementarities among multiple technologies that avoids the curse of dimensionality (2012)
Working Paper: A test for complementarities among multiple technologies that avoids the curse of dimensionality (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:116:y:2012:i:3:p:354-357

DOI: 10.1016/j.econlet.2012.03.023

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().