Non-Neutral Marginal Innovation Costs, Omitted Variables, and Induced Innovation
| Autor: | C. Richard Shumway, Benjamin W. Cowan, Daegoon Lee |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
050208 finance Test procedures media_common.quotation_subject 05 social sciences Induced innovation Estimator Public research Specification 0502 economics and business Economics Econometrics 050207 economics Function (engineering) Agronomy and Crop Science media_common Panel data |
| Zdroj: | Agricultural and Resource Economics Review. 49:465-491 |
| ISSN: | 2372-2614 1068-2805 |
| DOI: | 10.1017/age.2020.1 |
| Popis: | Prior tests of Hicks’ Induced Innovation Hypothesis (IIH) have been greatly hampered because the lack of supply-side data implicitly requires the untenable assumption that the marginal research cost is the same for different inputs. We document that, with appropriate model specification and panel data, a two-way fixed-effects estimator can account for much of the non-neutrality of the innovation function. Using a test procedure that is robust to a time-variant and non-neutral innovation function, we test the IIH in U.S. agriculture for the period 1960–2004. We use only readily available data for innovation demand and total public research expenditures. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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