Caputo, Michael R.
Paris, Quirino
AN ATEMPORAL MICROECONOMIC THEORY AND AN EMPIRICAL TEST OF PRICE-INDUCED TECHNICAL PROGRESS
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An exhaustive comparative statics analysis of a general price taking cost-minimizing model of the firm operating under the influence of price-induced technical progress is carried out from a dual vista. The resulting refutable implications are observable and thus amenable to empirical verification, and take on the form of a symmetric and negative semidefinite matrix. Using data from individual cotton gins in Californias San Joaquin Valley, we empirically test the complete set of implications of the price-induced technical progress theory using both classical and Bayesian statistical procedures. We find that the data are fully consistent with the atemporal, costminimizing, price-induced microeconomic theory of technical progress.
Research and Development/Tech Change/Emerging Technologies;
2004
http://ageconsearch.umn.edu/record/11992/files/wp040009.pdf;