Production Structure and Decomposition of Biased Technical Change: An Example from Canadian Agriculture

Giannis Karagiannis and W. Hartley Furtan

Review of Agricultural Economics, 1993, vol. 15, issue 1, 21-37

Abstract: During the 1935 to 1985 period, empirical evidence from Canadian agriculture suggests that both Hicksian bias and the scale effect determined the direction of biased technical change. The overall bias in technical change was found to be machinery-using, land-saving, and fertilizer-using. In general, however, the Hicksian bias dominated the scale effect; and hence, it determined the direction of bias in technical change. Thus, it can be argued that technical change in Canadian agriculture is mainly induced by changes in relative factor prices. However, after 1975, the scale effect of biased technical change for all inputs became relatively stronger.

Date: 1993
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