CAUSALITY BETWEEN TFP, R&D AND PRICES: UNCONDITIONAL AND CONDITIONAL LINEAR FEEDBACK

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This paper estimates the unconditional and conditional linear dependence between exogenous supply (R&D), endogenous demand (prices) and TFP based on the linear feedback method. Unit root tests are performed for Nebraska agriculture sector data spread over 1936-94 time period. Results indicate the influence of both R&D and prices on productivity.

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