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Nonparametric Tests for Cost Constrained Technologies

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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.

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© 1993 Springer-Verlag Berlin · Heidelberg

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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

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  • DOI: https://doi.org/10.1007/978-3-642-78508-5_14

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-78510-8

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