Regulation and the Rate and Direction of Induced Technical Change

Wesley A. Magat

Bell Journal of Economics, 1976, vol. 7, issue 2, 478-496

Abstract: This article examines the effect of three forms of regulation (rate of return, ceiling-price, and markup) upon the rate and direction of technical advance selected by a myopic profit maximizing firms. With a homothetic production function ceiling-price regulation induces a faster rate of technical progress than would result without regulation, and faster than that which would result with markup regulation. In addition, our results lend no support for Smith's conjecture that technical advance causes an increase in the discrepancy between the resource allocations selected by a rate of return regulated firm and those chosen by an unregulated firm.

Date: 1976
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://links.jstor.org/sici?sici=0361-915X%2819762 ... O%3B2-V&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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:rje:bellje:v:7:y:1976:i:autumn:p:478-496

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in Bell Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().