The Implications of Regulation for Induced Technical Change: Comment
Volume: Volume 6, No. 2
Issue: Autumn 1975
Pages: pp. 703-705
Authors: Koji Okuguchi
Title: The Implications of Regulation for Induced Technical Change: Comment
Abstract: Using a neoclassical production function with factor augmentation, Smith contends that induced innovation will reinforce both profit and sales maximizing firms' misallocation of resources under the regulatory constraint. We show that Smith's conclusion is not tenable.
JEL Classification
Regulation of Public Utilities (6130)
Technological Change Innovation Research and Development: General (6210)