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Linear Programming Tests of Regularity Conditions for Production Functions

  • W. Erwin Diewert
  • Celik Parkan

Abstract

The main purpose of this paper is to extend the nonparametric tests of regularity conditions on production functions and the related tests for the consistency of a data set with the hypothesis of productive efficiency or with the hypotheses of cost minimizing or profit maximizing behavior suggested by Afriat [1972] and Hanoch/’Rothschild [1972]. The tests suggested by these authors can be regarded as extensions of some tests due to Farrell [1957] and Farrell/Fieldhouse [1962]. Typically these tests involve the solution of a number of linear programming problems where the objective functions and the constraint functions are known functions of the given data; hence the title of the present paper.

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Copyright information

© Springer-Verlag Berlin Heidelberg 1983

Authors and Affiliations

  • W. Erwin Diewert
  • Celik Parkan

There are no affiliations available

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