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A Nonparametric Analysis of Cost Minimization and Profit Maximization Behavior for a Sample of Kansas Farms

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Author Info

  • Moghnieh, Ghassan A.
  • Featherstone, Allen M.
  • Goodwin, Barry K.

Abstract

This study investigates nonparametrically the optimizing behavior of a sample of 289 Kansas farms under profit-maximizing and cost-minimizing hypotheses. The results do not support strict adherence to either optimization hypothesis. However, evidence against cost-minimizing behavior seems to be far less substantial than that against profit-maximizing behavior.

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File URL: http://purl.umn.edu/118197
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Bibliographic Info

Paper provided by Kansas State University, Department of Agricultural Economics in its series Staff Papers with number 118197.

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Date of creation: Jul 1991
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Handle: RePEc:ags:ksaesp:118197

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Postal: 342 Waters Hall, Manhattan, Kansas 66506
Phone: (785)532-6702
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Web page: http://www.agecon.ksu.edu/
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Related research

Keywords: Agricultural Finance; Farm Management;

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  1. Varian, Hal R., 1985. "Non-parametric analysis of optimizing behavior with measurement error," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 445-458.
  2. Hanoch, Giora & Rothschild, Michael, 1972. "Testing the Assumptions of Production Theory: A Nonparametric Approach," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 256-75, March-Apr.
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