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

Li Yu, Terrance Hurley, James Kliebenstein and Peter Orazem

ISU General Staff Papers from Iowa State University, Department of Economics

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.

Date: 2012-09-01
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Journal Article: 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)
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