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Separability Testing in Production Economics

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  • Rulon D. Pope
  • Arne Hallam

Abstract

The implications of separability in production are examined using duality. Restrictions on the profit function implied by separability of the production function, and vice versa, are derived in a simple way. These restrictions are then calculated for commonly used classes of functional forms. Then the method is used to test separability of the profit function using experimental production data. The hypothesis that the profit function was separable (plant nutrients from spacing unit costs) could not be rejected. This implies that an aggregate price index for nutrients is appropriate.

Suggested Citation

  • Rulon D. Pope & Arne Hallam, 1988. "Separability Testing in Production Economics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 142-152.
    • Handle: RePEc:oup:ajagec:v:70:y:1988:i:1:p:142-152.
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    File URL: http://hdl.handle.net/10.2307/1241984
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    Cited by:

    1. Shumway, C. Richard & Davis, George C., 2001. "Does consistent aggregation really matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-34.
    2. Vissa, Anuradha Akkaraju, 1991. "Three essays in demand analysis," ISU General Staff Papers 1991010108000011081, Iowa State University, Department of Economics.
    3. Polson, Rudolph A. & Shumway, C. Richard, 1992. "Production Relationships In South Central Agriculture," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(2), pages 1-15, December.
    4. Hallam, Arne, 1992. "A Brief Overview Of Nonparametric Methods In Economics," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(2), pages 1-15, October.
    5. Poison, Rudolph A. & Shumway, C. Richard, 1990. "Structure of South Central Agricultural Production," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(2), pages 153-163, December.
    6. C. Richard Shumway, 1993. "Production economics: Worthwhile investment?," Agricultural Economics, International Association of Agricultural Economists, vol. 9(2), pages 89-108, August.
    7. Y. Surry, 1990. "Econometric Modelling Of The European Community Compound Feed Sector: An Application To France," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(3), pages 404-421, September.
    8. Unterschultz, James R. & Jeffrey, Scott R. & Quagrainie, Kwamena K., 2000. "Value-Adding 20 Billion By 2005: Impact At The Alberta Farm Gate," Project Report Series 24049, University of Alberta, Department of Resource Economics and Environmental Sociology.
    9. Villezca-Becerra, Pedro A. & Shumway, C. Richard, 1992. "Multiple-Output Production Modeled With Three Functional Forms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-16, July.
    10. Ball, V. Eldon & Moss, Charles B. & Erickson, Kenneth W. & Nehring, Richard F., 2003. "Modeling Supply Response In A Multiproduct Framework Revisited: The Nexus Of Empirics And Economics," 2003 Annual meeting, July 27-30, Montreal, Canada 21981, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Aradhyula, Satheesh Venkata, 1989. "Policy structure, output supply and input demand for US crops," ISU General Staff Papers 198901010800009909, Iowa State University, Department of Economics.

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