Testing for Non-jointness in Oil and Gas Exploration: A Variable Profit Function Approach
The empirical validity of the hypothesis of nonjointness is investigated in the context of a multiple-output production process that utilizes both fixed and variable inputs. Specifically, global tests of the hypotheses of almost nonjointness in the input quantities and prices, and separability of inputs and outputs, are conducted using data on oil and natural gas exploration in Alberta, Canada. Based on estimation of a generalized linear-Generalized Leontief variable profit function, the authors reject the separability hypothesis, but not the nonjointness hypothesis. Empirical issues concerning oil and gas exploration activity are examined using the maximum likelihood estimates obtained under nonjointness. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
Volume (Year): 30 (1989)
Issue (Month): 2 (May)
|Contact details of provider:|| Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297|
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |
When requesting a correction, please mention this item's handle: RePEc:ier:iecrev:v:30:y:1989:i:2:p:479-504. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or ()
If references are entirely missing, you can add them using this form.