The impact of regulation on technical change

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Date: Apr. 1999
From: Southern Economic Journal(Vol. 65, Issue 4)
Publisher: Southern Economic Association
Document Type: Article
Length: 7,636 words

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Abstract :

The effects of government regulation on a company's choice of innovations and on the rate of technological innovations were investigated. A 1977-1987 group of 20 US interstate natural gas pipeline companies were examined. Findings showed that regulation caused companies to apply a technology that improved noncapital more than capital, and noncapital more than the regulated company would have used. Moreover, while technical regress was evident during the sample period, regulation caused a small decrease in the rate of technological innovations and a slight rise in production cost on average.

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Gale Document Number: GALE|A54545855