THE IMPACT OF TECHNOLOGICAL CHANGE ON A COMPETITIVE INDUSTRY
By: Perrin, Richard K.
Perrin, Richard K., THE IMPACT OF TECHNOLOGICAL CHANGE ON A COMPETITIVE INDUSTRY, Journal of Agricultural and Resource Economics, Volume 22, Issue 2, December 1997, Pages 345-355
This study analytically evaluates the impact of technological change on output and input markets in a competitive industry of identical firms. Firm-level technology and technological change are represented parametrically as local approximations to unknown functional forms. The comparative statics analysis solved for changes in equilibrium market prices and quantities as functions of parameters that characterized technological change. The technology-induced shift-weighted induced change input prices. The model provides a consistent and systematic framework for evaluating the impact of technological change, either ex ante or ex post.