Measuring the Impact of Price-Induced Innovation on Technological Progress: Application to the U.S. Food Processing and Distribution Sector

Pinar Celikkol and Spiro Stefanou

Journal of Productivity Analysis, 1999, vol. 12, issue 2, 135-151

Abstract: A model of price-induced innovation is presented incorporating long-run prices as arguments in the production function serving the role of stimulating firms to seek innovations. The empirical application examines the production structure and technological progress of the U.S. food processing and distribution sector for the period 1948–1991. The empirical model separates scarcity, innovation, and exogenous technical change responses in analyzing the Morishima elasticities for input combinations and multifactor input biases. The results suggest significant structural changes occurring in the food processing and distribution sector since 1980. Focusing on multifactor input bias, results suggest that there are no wide changes in technical change patterns over the last forty years. However, Morishima elasticity results suggest a more varied pattern of technical change between inputs. The price-induced technical progress has a dominant contribution on input decisions compared with the exogenous technical change. Copyright Kluwer Academic Publishers 1999

Keywords: Price-induced innovation; Factor-using bias; Food processing sector (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
http://hdl.handle.net/10.1023/A:1007807213843 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:kap:jproda:v:12:y:1999:i:2:p:135-151

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11123/PS2

DOI: 10.1023/A:1007807213843

Access Statistics for this article

Journal of Productivity Analysis is currently edited by William Greene, Chris O'Donnell and Victor Podinovski

More articles in Journal of Productivity Analysis from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().