Induced Innovation in U.S. Agriculture: Time‐series, Direct Econometric, and Nonparametric Tests

Yucan Liu, C. Richard Shumway · 2008 · American Journal of Agricultural Economics

Summary. This paper tests whether farmers innovate in response to input price changes—the induced innovation hypothesis. Using U.S. state-level agricultural data and three different statistical methods, the authors find little evidence that farmers develop or adopt technologies to save expensive inputs. The results hold consistently across all testing approaches, though the analysis focuses only on demand-side factors and cannot rule out that developing cost-saving technologies for expensive inputs may simply be too expensive.

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Liu, Y., & Shumway, C. R.. (2008). Induced Innovation in U.S. Agriculture: Time‐series, Direct Econometric, and Nonparametric Tests. American Journal of Agricultural Economics. https://doi.org/10.1111/j.1467-8276.2008.01165.x

@article{liu-2008-induced-innovation-u-s-agriculture,
  title   = {Induced Innovation in U.S. Agriculture: Time‐series, Direct Econometric, and Nonparametric Tests},
  author  = {Yucan Liu and C. Richard Shumway},
  journal = {American Journal of Agricultural Economics},
  year    = {2008},
  doi     = {10.1111/j.1467-8276.2008.01165.x},
  url     = {https://doi.org/10.1111/j.1467-8276.2008.01165.x}
}

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TI  - Induced Innovation in U.S. Agriculture: Time‐series, Direct Econometric, and Nonparametric Tests
AU  - Yucan Liu
AU  - C. Richard Shumway
JO  - American Journal of Agricultural Economics
PY  - 2008
DO  - 10.1111/j.1467-8276.2008.01165.x
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Details

DOI: 10.1111/j.1467-8276.2008.01165.x
Countries: United States
Regions: North America
Categories: agtech, innovation-theory
Added: 2026-04-28