Abstract
We present novel evidence on the effect of market size on technology adoption and productivity. Our tests exploit a natural experiment in the U.S. corn industry where changes to national energy policy created exogenous increases in demand. Difference‐in‐difference estimates show that the demand shock caused technical change as corn producers adopted higher quality seeds which in turn raised productivity by 7%. We develop a simple model that formalizes the mechanisms underlying our results.
| Original language | English |
|---|---|
| Pages (from-to) | 328-363 |
| Number of pages | 36 |
| Journal | Journal of Industrial Economics |
| Volume | 68 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 29 Jul 2020 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 7 Affordable and Clean Energy
ASJC Scopus subject areas
- Accounting
- General Business,Management and Accounting
- Economics and Econometrics
Fingerprint
Dive into the research topics of 'Demand-driven technical change and productivity growth: theory and evidence from the Energy Policy Act'. Together they form a unique fingerprint.Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver