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Generalization of Nonparametric Tests for Homothetic Production

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  • Elvira Silva
  • Spiro E. Stefanou

Abstract

The nonparametric tests for homotheticity proposed by Hanoch and Rothschild and by Varian (1984) are a special case of the tests proposed in this paper. The previous tests are generalized by relaxing the linear homogeneity assumption. A range for the degree of homogeneity as well as a region for the input demands are constructed using a dual approach. Copyright 1996, Oxford University Press.

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  • Elvira Silva & Spiro E. Stefanou, 1996. "Generalization of Nonparametric Tests for Homothetic Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 542-546.
    • Handle: RePEc:oup:ajagec:v:78:y:1996:i:3:p:542-546
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    File URL: http://hdl.handle.net/10.2307/1243272
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    Cited by:

    1. Jan Heufer, 2013. "Testing revealed preferences for homotheticity with two-good experiments," Experimental Economics, Springer;Economic Science Association, vol. 16(1), pages 114-124, March.
    2. Jan Heufer & Per Hjertstrand, 2015. "Homothetic Efficiency and Test Power: A Non-Parametric Approach," Tinbergen Institute Discussion Papers 15-064/I, Tinbergen Institute.
    3. Laurens CHERCHYE & Timo KUOSMANEN & Thierry POST, 2001. "Non-Parametric Production Analysis under Alternative Price Conditions," Working Papers of Department of Economics, Leuven ces0105, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.

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