Modeling Directions of Technical Change in Agricultural Sector.

This paper reviews the economic models explaining the directions of technical change. The application to agricultural sector is also explored. The induced innovation model extensively used in agricultural development studies has left unexplained stylized facts in several empirical evidences. This leads to the motivation of this paper to find an alternative model. While the induced innovation relies heavily on the change of relative factor price on biased technical change, the directed technical change model developed by Acemoglu (2002, 2007, 2009) endogenizes investment on research and explains the incentives of technology monopolists. The directed technical change model is developed and applied to agricultural sector. Given a hypothetical situation of increasing relative scarce agricultural labor, the model provides insights of which the policy direction for technical change in agricultural sector can be expected.directed technical change, induced innovation

Induced Innovations and Foreign Workers in U.S. Agriculture

A cost function approach of induced innovation is used to measure the biases in U.S. agricultural technology between 1948-1994. The results show significant labor-saving, capital-using technical change. Focusing on the impact of migration policy on labor-saving technology, a simulaton of different rates of labor-saving technical change is conducted. The simulation shows decreases in elasticity of labor demand and demand quantity, and an increase in wage rate as technology becomes more labor-saving.induced innovation, biased technical change, foreign labor, Labor and Human Capital, Research and Development/Tech Change/Emerging Technologies, Q160, J430, O300,

INDUCED INNOVATIONS AND FOREIGN WORKERS IN U.S. AGRICULTURE

A cost function approach of induced innovation is used to measure the biases in U.S. agricultural technology between 1948-1994. The results show significant labor-saving, capital-using technical change. Focusing on the impact of migration policy on labor-saving technology, a simulation of different rates of labor-saving technical change is conducted. The simulation shows decreases in elasticity of labor demand and demand quantity, and an increase in wage rate as technology becomes more labor-saving.Labor and Human Capital,

Farm Mechanization and the Farm Labor Market: A Socioeconomic Model of Induced Innovation

Farm Management, Labor and Human Capital,

Labor Substitutability in Labor Intensive Agriculture and Technological Change in the Presence of Foreign Labor

The Morishima elasticity of substitution (MES) is estimated to address factor substitutability in Florida agriculture during 1960-1999. By adopting a profit maximization model of induced innovation theory, the MES's between hired and self-employed labor and the MES's between labor and capital provide implications for future immigration policies.Morhishima elasticity of substitution, induced innovation, biased technical change, Labor and Human Capital, Research and Development/Tech Change/Emerging Technologies, Q160, J430, O300,

Institutional and Socioeconomic Model of Farm Mechanization and Foreign Workers

Farm Management, Institutional and Behavioral Economics, Labor and Human Capital,

Institutional and Socioeconomic Model of Farm Mechanization and Foreign Workers

A multi-output cost function approach to induced innovation is adopted to analyze the impact of socioeconomic variables and institutional factors on technological change in agriculture. Focusing on the impact of immigration policy and farm mechanization, the study includes variables such as H-2A or guest workers, deportable Mexicans working in agriculture representing the percentage of unauthorized workers, the public and private research expenditures on farm mechanization and other research on agricultural technology. We found that over the 1971-1995 period, the technology was biased toward labor-saving technology, but was capital-neutral. The number of unauthorized workers had no significant effect on cost shares; the number of H-2A workers had a negative effect on the cost share of capital. Both had a positive effect on the revenue share of cereals. Public expenditures on mechanization have a significant impact on reducing the cost share of capital; however, private expenditures on machinery increase the cost share of capital. Using the Morishima elasticity of substitution, we found that labor was a substitute for capital when the price of capital changes, but when the price of labor changes, capital was not necessarily a substitute for labor.Labor and Human Capital,

LABOR SUBSTITUTABILITY IN LABOR INTENSIVE AGRICULTURE AND TECHNOLOGICAL CHANGE IN THE PRESENCE OF FOREIGN LABOR

The Morishima elasticity of substitution (MES) is estimated to address factor substitutability in Florida agriculture during 1960-1999. By adopting a profit maximization model of induced innovation theory, the MES's between hired and self-employed labor and the MES's between labor and capital provide implications for future immigration policies.Labor and Human Capital,

Farmer Innovativeness and Hybrid Maize Diffusion in Thailand

Hybrid maize in Thailand is one example of successful technology dissemination in a developing country. The first hybrid maize variety was released in 1982 by a public research institute, but did not become rapidly adopted until the privatization of the seed market in the early 1990s.Previous studies on the adoption of hybrid maize in Thailand mainly analyzed factors influencing the adoption decision, but none evaluated the timing of the adoption process. This study reveals the diffusion pattern of hybrid maize varieties and categorizes farmers by the time of adoption. It was hypothesized that different categories of farmers would differ in their innovativeness. The results show that the distribution of hybrid maize adoption in Thailand approaches a normal distribution consistent with the literature. Younger and less educated farmers with larger households and farm size tended to adopt hybrid maize faster than others. Furthermore, social activities, extension services, private company promotion programs and access to information on hybrid varieties played important roles in the adoption la

Ex-ante Impact Assessment of GM-Papaya Adoption in Thailand.

Despite the evidences of benefits from GM papayas adoption in other countries, concerns over the loss of export markets and health and environmental risks have led to great uncertainty and indecision about policies to support biotechnology in Thailand. Since 2001, field trials have been banned and the use of transgenic plants for production, consumption, or commercialization has been prohibited, but this ban is currently being reconsidered. This study estimates what the economic impact of the adoption of GM papaya would be if Thailand were to authorize the use of transgenic technology. We find that papaya farmers will benefit significantly from improved yields and even with no cost reduction.GM papaya, ex-ante assessment, Thailand