Induced Innovation in Italy: An Error Correction Model for the Period 1968-2002
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
In this work we utilise CES approach where factor ratios (mechanical power/labour and fertilizer/land) are regressed on price ratios and efficiency parameters (public and private R&D) to obtain a direct test of the induced innovation in Italian case for the period 1968-2002. Provided that inducement hypothesis implies a long run relationship an error correction model (ECM) is estimated to separate long-run effect, that is technological innovation, from short-run effects, that is factors substitution. The results corroborate the induced innovation hypothesis and underline the importance of private R&D in Italian agriculture.