Premium
Production Structure and Decomposition of Biased Technical Change: An Example from Canadian Agriculture
Author(s) -
Karagiannis Giannis,
Furtan W. Hartley
Publication year - 1993
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349709
Subject(s) - decomposition , agriculture , production (economics) , agricultural economics , technical change , economics , econometrics , natural resource economics , geography , macroeconomics , productivity , chemistry , archaeology , organic chemistry
During the 1935 to 1985 period, empirical evidence from Canadian agriculture suggests that both Hicksian bias and the scale effect determined the direction of biased technical change. The overall bias in technical change was found to be machinery‐using, land‐saving, and fertilizer‐using. In general, however, the Hicksian bias dominated the scale effect; and hence, it determined the direction of bias in technical change. Thus, it can be argued that technical change in Canadian agriculture is mainly induced by changes in relative factor prices. However, after 1975, the scale effect of biased technical change for all inputs became relatively stronger.