AN ANALYSIS OF THE SOURCE AND NATURE OF TECHNICAL CHANGE - THE CASE OF US-AGRICULTURE

This paper proposes a methodology to investigate the process of techni cal change with a focus on the dynamic effects of R&D investments on p roductivity, and on the induced innovation hypothesis for both inputs and outputs. The approach builds on a nonparametric representation of the underlying technology. An application to U.S. agriculture is prese nted. By distinguishing between private and public R&D investments. th e analysis provides useful insights into the source and the dynamic na ture of technical progress.