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Introduction of New Technology with a Sound Transition of the Input-Output Structure

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  • Kazuhiko Nishimura

Abstract

We examine the general equilibrium repercussions associated with the introduction of new technologies, using the generalized Leontief system that allows technological substitutions. We show that an untested introduction of cost-increasing technologies in any industry may result in creating a non-productive technological structure that does not satisfy the Hawkins-Simon condition, following the autonomous dynamic adjustment process with structural transitions in the economic system. Therefore, we propose a practicable control scheme of introducing cost-increasing technologies that strictly avoids the creation of non-productive structures in all periods of structural transition, using the available information on the ex ante technological structure.

Suggested Citation

  • Kazuhiko Nishimura, 2002. "Introduction of New Technology with a Sound Transition of the Input-Output Structure," Economic Systems Research, Taylor & Francis Journals, vol. 14(1), pages 89-94.
    • Handle: RePEc:taf:ecsysr:v:14:y:2002:i:1:p:89-94
    DOI: 10.1080/09535310220111842
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    References listed on IDEAS

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    1. Flick, Warren A, 1974. "Environmental Repercussions and the Economic Structure: An Input-Output Approach: A Comment," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 107-109, February.
    2. Takayama,Akira, 1985. "Mathematical Economics," Cambridge Books, Cambridge University Press, number 9780521314985, November.
    3. Steenge, Albert E, 1978. "Environmental Repercussions and the Economic Structure: Further Comments," The Review of Economics and Statistics, MIT Press, vol. 60(3), pages 482-486, August.
    4. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
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    Cited by:

    1. Dietzenbacher, Erik, 2005. "Waste treatment in physical input-output analysis," Ecological Economics, Elsevier, vol. 55(1), pages 11-23, October.

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