A new panel data test for Granger causality is presented that can be applied to panels with more time series observations than cross-sections. Inconsistency in these models with lagged dependent variables and fixed effects is avoided by differencing and pooling the data. The joint significance...

This chapter extends the work of the previous chapters by fitting a long run profit function to investigate the sources of output growth in South African agriculture. In the long run, all the conventional inputs are treated as variable, but the technology-related variables are fixed because they...

This paper briefly presents the results of a total factor productivity (TFP) study of South African commercial agriculture, for 1947-1997, and illustrates some potential pitfalls in rate of return to research (ROR) calculations. The lag between R&D and TFP is analyzed and found to be only 9...

An error correction model (ECM) of induced innovation, based on the two-stage CES production function allows direct tests of the inducement hypothesis, which are applied to U.S. data for 1880-1990. The time series properties of the variables include a structural break in 1920, cointegration is...