Profits and Politics: Coordinating Technology Adoption in Agriculture

Arbeitspapier

This paper examines the political economy of coordination in a simple two-sector model in which individuals' choice of agricultural technology affects industrialization. We demonstrate the existence of multiple equilibria; the economy is either characterized by the use of a traditional agricultural technology and a low level of industrialization or the use of a mechanized technology and a high level of industrialization. Relative to the traditional technology, the mechanized technology increases output but leaves some population groups worse off. We show that the distributional implications of choosing the mechanized technology restrict the possibility of Pareto-improving coordination by an elected policy-maker, even when we allow for income redistribution.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Center Discussion Paper ; No. 922

Classification and Topics

• Classification: Wirtschaft ; Industrialization; Manufacturing and Service Industries; Choice of Technology ; Structure and Scope of Government: General
• Subject: Industrialization ; Choice of Technology ; Government Policy ; Industrialisierung ; Technologiewahl ; Agrartechnik ; Neue politische Ökonomie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Pande, Rohini
• Event: Veröffentlichung
• (who): Yale University, Economic Growth Center
• (where): New Haven, CT
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/98326
• Last update: 10.03.2025, 11:45 AM CET