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Technology adoption under price uncertainty

By: Contributor(s): Material type: ArticleLanguage: En Publication details: 1992ISSN:
  • 0304-3878
 In: Journal of Development Economics v. 38, no. 1, p. 245-253Summary: The paper examines the impact of changes in the variance of output prices on the bias and intrafirm diffusion rate of technological change. The results indicate that a reduction in the variance of output prices will increase the rate of adoption and the intrafirm diffusion speed of yield-increasing technologies. The opposite is true for cost-reducing technologies.
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The paper examines the impact of changes in the variance of output prices on the bias and intrafirm diffusion rate of technological change. The results indicate that a reduction in the variance of output prices will increase the rate of adoption and the intrafirm diffusion speed of yield-increasing technologies. The opposite is true for cost-reducing technologies.

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