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.
The authors are indebted to C. Blackorby for helpful comments and to the Social Sciences and Humanities Research Council of Canada for financial support.
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Diewert, W.E., Parkan, C. (1983). Linear Programming Tests of Regularity Conditions for Production Functions. In: Eichhorn, W., Henn, R., Neumann, K., Shephard, R.W. (eds) Quantitative Studies on Production and Prices. Physica, Heidelberg. https://doi.org/10.1007/978-3-662-41526-9_11
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DOI: https://doi.org/10.1007/978-3-662-41526-9_11
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