Abstract
This paper makes use of the Mahler inequality to derive nonparametric tests of regularity and Farrell efficiency for cost constrained (indirect) technologies. This extends similar results developed for direct or unconstrained technology in Fare and Grosskopf (1991).
This paper was completed while the authors were visiting the Resources and Technology Division of the Economic Research Service, USDA, summer 1992. The authors are members of the Department of Economics, Southern Illinois University, Carbondale, Illinois, USA.
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
CHAVAS, J.-P. and COX, T. (1988), ‘A Nonparametric Analysis of Agricutural Technology,’ American Journal of Agricultural Economics 70, 303–310.
DIEWERT, W. E. and PARKAN, C. (1983), ‘Linear Programming Tests of Regularity Conditions for Production Functions,’ in Eichhorn, W., Henn, R., Neumann, K. and Shephard, R. W., eds, Quantitative Studies on Production and Prices, Würzburg: Physica-Verlag.
Färe, R. and GROSSKOPF, S. (1991), ‘Nonparametric tests of Regularity, Farrell Efficiency, and Goodness-of-Fit,’ mimeo.
Färe, R., GROSSKOPF, S. and Lovell, C. A. K. (1988) ‘An Indirect Approach to the Evaluation of Producer Performance,’ Journal of Public Economics 37, 71–89.
Färe, R. and GROSSKOPF, S. (forthcoming) Cost and Revenue Constrained Production, Bilkent University Lecture Series, Springer-Verlag, Heidelberg.
FARRELL, M. J. (1957), ‘The Measurement of Productive Efficiency,’ Journal of the Royal Statistical Society, Series A, General 125:2, 252-267.
GORMAN, W. (1976), ‘Tricks with Utility Functions,’ in ARTIS, M. and MOBAY, A., eds., Essays in Economic Analysis: Proceedings of the 2975 AUTE Conference, Sheffield, Cambridge.
HANOCH, G. and ROTHSCHILD, M. (1972), ‘Testing the Assumptions of Production Theory: A Nonparametric Approach,’ Journal of Political Economy 80, 256–275.
MAHLER, K. (1939), ‘Ein Ubertragungsprinzip fur Konvexe Korper,’ Casopis pr Pestovani Matematiky a Fysiky 63, 93–102.
NEWMAN, P. (1987), ‘Gauge Functions,’ in ATWELL, J., MILGATE, M. and NEWMAN, P., eds., The New Palgrave: A Dictionary of Economics, London: MacMillan Press, 484–488.
SHEPHARD, R. W. (1974), Indirect Production Functions, Meisenheim am Glan: Verlag Anton Hain.
VARIAN, H. R. (1984), ‘Nonparametric Approach to Production Analysis,’ Econometrica 52, 579–597.
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1993 Springer-Verlag Berlin · Heidelberg
About this chapter
Cite this chapter
Färe, R., Grosskopf, S. (1993). Nonparametric Tests for Cost Constrained Technologies. In: Diewert, W.E., Spremann, K., Stehling, F. (eds) Mathematical Modelling in Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-78508-5_14
Download citation
DOI: https://doi.org/10.1007/978-3-642-78508-5_14
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-78510-8
Online ISBN: 978-3-642-78508-5
eBook Packages: Springer Book Archive