Agricultural Economics, Department of
Department of Agricultural Economics: Faculty Publications
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ORCID IDs
Document Type
Article
Date of this Version
5-2001
Citation
American Journal of Agricultural Economics (May 2001) 83(2): 455-464
Abstract
'Iraditional measures of technological change, such as the rate of technical change, are based on producer-oriented prices. Here, we employ a general equilibrium analysis of an open economy to examine how the consumer welfare gain from a technological change, measured as Hicksian equivalent variation, is related to the rate of technical change, the biases of the technological change, and tax distortions in the economy. An analytical solution shows these relationships in a readily computable framework, and demonstrates that the rate of technical change will equal the rate of welfare change in only very unrealistic cases.
Comments
Copyright 2001, American Agricultural Economics Association. Used by permission