TY - JOUR
T1 - Testing the induced innovation hypothesis using cointegration analysis
AU - Machado, Fernando S.
PY - 1995/9
Y1 - 1995/9
N2 - This paper deals with some of the problems involved in testing the hypothesis that factor price movements tend to influence the type of technological innovations which are developed and adopted, known as the Induced Innovation Hypothesis. Previous methods to perform this test are briefly reviewed and their limitations are discussed. A testing procedure which is based on the use of cointegration analysis is proposed and its advantages outlined. Finally, one application of the method is made, providing little support for the Induced Innovation Hypothesis in the case of US Agriculture (1948–83).
AB - This paper deals with some of the problems involved in testing the hypothesis that factor price movements tend to influence the type of technological innovations which are developed and adopted, known as the Induced Innovation Hypothesis. Previous methods to perform this test are briefly reviewed and their limitations are discussed. A testing procedure which is based on the use of cointegration analysis is proposed and its advantages outlined. Finally, one application of the method is made, providing little support for the Induced Innovation Hypothesis in the case of US Agriculture (1948–83).
UR - http://www.scopus.com/inward/record.url?scp=84991125040&partnerID=8YFLogxK
U2 - 10.1111/j.1477-9552.1995.tb00781.x
DO - 10.1111/j.1477-9552.1995.tb00781.x
M3 - Article
AN - SCOPUS:84991125040
SN - 0021-857X
VL - 46
SP - 349
EP - 360
JO - Journal of Agricultural Economics
JF - Journal of Agricultural Economics
IS - 3
ER -