Economics of Technology Adoption

This study examines the factors that influence the simultaneous adoption of no-till farming technology and Roundup Ready soybean (RR) varieties and the welfare benefits of the adoption of the technologies. The single adoption of the individual technologies is analyzed using a feasible generalized least squares (FGLS) estimation. A two-limit Tobit procedure is further used to analyze the extent of the adoption of the technologies. To answer the question of the simultaneity between the two technologies, we construct a Wu-Hausman test statistic using the results of two separate single equation probit models and a simultaneous two-equation econometric model. Furthermore, the book provides readers with a simple way of analyzing the welfare benefits of adopting a new technology in the case of a parallel and a pivotal shift of the supply curve. The theoretical model developed assumes two main regions; a large producer country adopting the new technology (U.S.) and the rest of the world (ROW), as the non-adopting region. Economic surpluses gained by producers and consumers in the two regions are discussed. This book is aimed at providing professionals, policy makers, researchers and intermediate to graduate level students in economics with simple but rigorous strategies that can be used in modeling and analyzing the concomitant adoption of technologies.