Multimarket Effects of Technological Change

Fred C. White and A.A. Araji

Review of Agricultural Economics, 1991, vol. 13, issue 1, 99-107

Abstract: A technological change associated with the production of one commodity can affect the production and price of that commodity as well as related commodities. Hence, the impact of a technological change can spill over into other markets through price effects on inputs, outputs, complements, and substitutes. This article examines the impacts of technological changes in related markets. An empirical application of the analytical framework is applied to the U.S. beef and pork sectors. Cross-market effects of technological change for these commodities are important. These results imply that research allocation decisions should take cross-market effects into account.

Date: 1991
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