Separability and aggregation
AbstractThis paper examines the conditions for homothetic separability of a technology that is an aggregate of technologies of individual firms or industries. Given that the primitive (industry or firm) technologies exhibit homothetic separability, the authors establish necessary and sufficient conditions for the aggregate (sectoral) technology to also exhibit homothetic separability. These conditions are expressed in terms of the cost functions of the primitive technologies. They may then be utilized to obtain an econometric test for separability of the aggregate technology, using data only on the primitive technologies. Copyright 1990 by The London School of Economics and Political Science.
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Bibliographic InfoPaper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-153228.
Date of creation: 1990
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Publication status: Published in Economica (1990) v.57, p.239-247
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- Laisney, François, 1991. "Mikroökonometrische Untersuchung von Aggregationsproblemen: Eine partielle Übersicht," ZEW Discussion Papers 91-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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