IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-01o30003.html
   My bibliography  Save this article

Price-induced technical progress and comparative statics

Author

Listed:
  • Quirino Paris

    (University of California, Davis)

  • Michael R. Caputo

    (University of California, Davis)

Abstract

The conjecture of a price-induced technical progress was formulated by Hicks in 1932. It acquired prominence during the seventies with the work of Hayami and Ruttan who dealt with the agricultural sectors in the United States and Japan. A novel specification of this hypothesis is that output and input prices enter the production function as shift parameters of the technology frontier. In this paper, it is found that empirically verifiable hypotheses under price-induced technical progress can be expressed in the form of estimable combinations of partial derivatives of the input demand functions with the partial derivatives of the production function. In principle, these novel comparative statics relations are observable but their measurement requires the simultaneous estimation of the input demand and of the production functions. The price-induced technical progress specification presented in this paper includes a generalization of the Hotelling lemma.

Suggested Citation

  • Quirino Paris & Michael R. Caputo, 2001. "Price-induced technical progress and comparative statics," Economics Bulletin, AccessEcon, vol. 15(8), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-01o30003
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2001/Volume15/EB-01O30003A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Silberberg, Eugene, 1974. "A revision of comparative statics methodology in economics, or, how to do comparative statics on the back of an envelope," Journal of Economic Theory, Elsevier, vol. 7(2), pages 159-172, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kumar, Surender & Managi, Shunsuke, 2010. "Sulfur dioxide allowances: Trading and technological progress," Ecological Economics, Elsevier, vol. 69(3), pages 623-631, January.
    2. Michael Caputo & Quirino Paris, 2005. "An Atemporal Microeconomic Theory and an Empirical Test of Price-Induced Technical Progress," Journal of Productivity Analysis, Springer, vol. 24(3), pages 259-281, November.
    3. Esposti, Roberto & Pierani, Pierpaolo, 2008. "Price-induced technical progress in Italian agriculture," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 89(4).
    4. Quirino Paris, 2008. "Price-induced technical progress in 80 years of US agriculture," Journal of Productivity Analysis, Springer, vol. 30(1), pages 29-51, August.
    5. Caputo, Michael R. & Paris, Quirino, 2013. "An intertemporal microeconomic theory of disembodied and price-induced technical progress," Economic Modelling, Elsevier, vol. 33(C), pages 631-640.
    6. Pinedo, Wilman Iglesias; Fulginiti, Lilyan E.; Perrin, Richard K., 2024. "The Cost of Armed Conflict to Agriculture in Colombia," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 5(3), September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Park, Timothy A. & Antonovitz, Frances, 1991. "Econometric Tests Of Firm Decision Making Under Uncertainty: Optimal Output And Hedging Decisions," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271264, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Caputo, Michael R., 1998. "A dual vista of the Stackelberg duopoly reveals its fundamental qualitative structure," International Journal of Industrial Organization, Elsevier, vol. 16(3), pages 333-352, May.
    3. Caputo, Michael R. & Ling, Chen, 2013. "The intrinsic comparative dynamics of locally differentiable feedback Nash equilibria of autonomous and exponentially discounted infinite horizon differential games," Journal of Economic Dynamics and Control, Elsevier, vol. 37(10), pages 1982-1994.
    4. Borgonovo, E., 2008. "Differential importance and comparative statics: An application to inventory management," International Journal of Production Economics, Elsevier, vol. 111(1), pages 170-179, January.
    5. Michael Caputo & Quirino Paris, 2005. "An Atemporal Microeconomic Theory and an Empirical Test of Price-Induced Technical Progress," Journal of Productivity Analysis, Springer, vol. 24(3), pages 259-281, November.
    6. Yuntong Wang, 2014. "Envelope Theorem without Differentiability," Working Papers 1404, University of Windsor, Department of Economics.
    7. M. Hossein Partovi & Michael R. Caputo, 2006. "A Complete Theory Of Comparative Statics For Differentiable Optimization Problems," Metroeconomica, Wiley Blackwell, vol. 57(1), pages 31-67, February.
    8. Caputo, Michael R. & Wilen, James E., 1995. "Optimality conditions and comparative statics for horizon and endpoint choices in optimal control theory," Journal of Economic Dynamics and Control, Elsevier, vol. 19(1-2), pages 351-369.
    9. Caputo, Michael R, 1999. "The Relationship between Two Dual Methods of Comparative Statics," Journal of Economic Theory, Elsevier, vol. 84(2), pages 243-250, February.
    10. Ludvig Sinander, 2019. "The converse envelope theorem," Papers 1909.11219, arXiv.org, revised Jun 2022.
    11. Chambers, Robert G., 1979. "International Trade, Cartels, Customs Unions And Centrally Planned Economies," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278298, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Caputo, Michael R., 2003. "The comparative dynamics of closed-loop controls for discounted infinite horizon optimal control problems," Journal of Economic Dynamics and Control, Elsevier, vol. 27(8), pages 1335-1365, June.
    13. Barney, L. Jr., 1997. "Uncertainty and the comparative dynamics of stock price," International Review of Economics & Finance, Elsevier, vol. 6(4), pages 405-419.
    14. M. Partovi & Michael Caputo, 2007. "Existence of a Universal Comparative Statics Matrix for Differentiable Optimization Problems," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 30(2), pages 385-394, February.
    15. Eduardo Dávila & Andreas Schaab, 2024. "A Non-Envelope Theorem with Linearly Homogeneous Constraints," Cowles Foundation Discussion Papers 2405, Cowles Foundation for Research in Economics, Yale University.
    16. Liu, Karen, 1981. "Multiple Crop Supply and Factor Demand Component of the World Grains, Oilseeds, and Livestock Model," Staff Reports 276718, United States Department of Agriculture, Economic Research Service.
    17. Pope, Rulon D. & Kramer, Randall A., 1978. "Production Uncertainty and Factor Demands for the Competitive Firm," Working Papers 225637, University of California, Davis, Department of Agricultural and Resource Economics.
    18. Shumway, C. Richard & Jegasothy, Kandiah & Alexander, William P., 1988. "Production Interrelationships In Sri Lankan Peasant Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(01), pages 1-13, April.
    19. Ludvig Sinander, 2022. "The Converse Envelope Theorem," Econometrica, Econometric Society, vol. 90(6), pages 2795-2819, November.
    20. Michael Caputo, 2007. "The Lagrange multiplier is not the shadow value of the limiting resource in the presence of strategically interacting agents," Economics Bulletin, AccessEcon, vol. 3(20), pages 1-8.

    More about this item

    Keywords

    comparative statics;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • D2 - Microeconomics - - Production and Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-01o30003. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.