NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Diffusion of New Technologies: Evidence From the Electric Utility Industry

Nancy L. Rose, Paul L. Joskow

NBER Working Paper No. 2676
Issued in August 1988
NBER Program(s):   PR

This paper investigates the effect of firm size and ownership structure on technology adoption decisions, using data on the electric utility industry. We argue that traditional models of technology diffusion are subject to sample selectivity biases that may overstate the effect of firm size on adoption probabilities. By extending conventional hazard rate models to use information on both adoption and non-adoption decisions, we differentiate between firms' opportunities for adoption and their underlying adoption propensities. The results suggest that large firms and investor-owned electric utilities are likely to adopt new technologies earlier than their smaller and publicly-owned counterparts. Moreover, the selection biases from conventional statistical models can lead one to overstate size effects by a factor of two and to understate ownership structure and factor cost effects by two to four times.

download in pdf format
   (410 K)

download in djvu format
   (260 K)

email paper

This paper is available as PDF (410 K) or DjVu (260 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w2676

Published: Rand Journal of Economics, Autumn, 1990, pp. 354-373 citation courtesy of

Users who downloaded this paper also downloaded these:
Hall and Khan w9730 Adoption of New Technology
Borenstein and Rose w3785 Competition and Price Dispersion in the U.S. Airline Industry
Hall w10212 Innovation and Diffusion
Fabrizio, Rose, and Wolfram w11001 Do Markets Reduce Costs? Assessing the Impact of Regulatory Restructuring on U.S. Electric Generation Efficiency
Jaffe, Newell, and Stavins w7970 Technological Change and the Environment
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us