Technological Change Biases Both in Outputs and in Inputs Caused by Public Agricultural Research and Extension Activities in Japan, 1957-1997

Abstract

This paper investigates the magnitude and the Hicksian output and input biases of technological change brought about by investments in public agricultural research and extension activities in Japan. For this objective, it estimates a translog multiproduct cost function for 1957-97. Empirical results show that the cost reduction effects were fairly large. The Hicksian (1932) biases were found to be livestock-augmenting, labor-and other-input-saving, and machinery- and intermediate-input-using. Except for other input, the directions of the biases are consistent with the Hicksian (1932) induced innovation hypothesis, which supports the public-sector-induced-innovation model proposed by Hayami and Ruttan (1985) and Ohtsuka (1982).JEL Classification Numbers: O3 (Technological Change); Q16 (Agricultural Technology, Input and Output Biases)