IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v79y1997i4p1164-1176.html
   My bibliography  Save this article

Variations on Invariance or Some Unpleasant Nonparametric Arithmetic

Author

Listed:
  • James A. Chalfant
  • Bin Zhang

Abstract

The nonparametric approach to production or demand analysis involves testing data for compatibility with restrictions from theory. This avoids reliance on particular functional forms. When the data are not consistent with utility or profit maximization, adjustments in the data using linear programming can restore consistency. Such adjustments have been interpreted as taste changes or measures of technical change and technical change bias. This paper describes nonparametric approaches and shows that the programming methods that have been used yield results that are not invariant to the scaling of prices and quantities. A solution is proposed that solves the invariance problem. Copyright 1997, Oxford University Press.

Suggested Citation

  • James A. Chalfant & Bin Zhang, 1997. "Variations on Invariance or Some Unpleasant Nonparametric Arithmetic," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1164-1176.
  • Handle: RePEc:oup:ajagec:v:79:y:1997:i:4:p:1164-1176
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1244273
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Madhu Khanna & Wanhong Yang & Richard Farnsworth & Hayri Önal, 2003. "Cost-Effective Targeting of Land Retirement to Improve Water Quality with Endogenous Sediment Deposition Coefficients," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 538-553.
    2. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
    3. Arun S. Malik & David Letson & Stephen R. Crutchfield, 1993. "Point/Nonpoint Source Trading of Pollution Abatement: Choosing the Right Trading Ratio," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(4), pages 959-967.
    4. King, Dennis M., 2005. "Crunch Time for Water Quality Trading," Choices, Agricultural and Applied Economics Association, vol. 20(1).
    5. Lankoski, Jussi E. & Lichtenberg, Erik & Ollikainen, Markku, 2008. "AJAE Appendix for Point/Nonpoint Effluent Trading with Spatial Heterogeneity," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(4), November.
    6. Rabotyagov, Sergey S. & Campbell, Todd & Jha, Manoj & Gassman, Philip W. & Arnold, Jeffrey G. & Kurkalova, Lyubov A. & Secchi, Silvia & Feng, Hongli & Kling, Catherine L., 2010. "Least Cost Control of Agricultural Nutrient Contributions to the Gulf of Mexico Hypoxic Zone," Staff General Research Papers Archive 31319, Iowa State University, Department of Economics.
    7. Segerson, Kathleen, 1988. "Uncertainty and incentives for nonpoint pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 87-98, March.
    8. Ronald C. Griffin & Daniel W. Bromley, 1982. "Agricultural Runoff as a Nonpoint Externality: A Theoretical Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(3), pages 547-552.
    9. Jussi Lankoski & Erik Lichtenberg & Markku Ollikainen, 2008. "Point/Nonpoint Effluent Trading with Spatial Heterogeneity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 1044-1058.
    10. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, December.
    11. Hung, Ming-Feng & Shaw, Daigee, 2005. "A trading-ratio system for trading water pollution discharge permits," Journal of Environmental Economics and Management, Elsevier, vol. 49(1), pages 83-102, January.
    12. James S. Shortle & James W. Dunn, 1986. "The Relative Efficiency of Agricultural Source Water Pollution Control Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 668-677.
    13. Ribaudo, Marc & Hansen, LeRoy T. & Hellerstein, Daniel & Greene, Catherine R., 2008. "The Use of Markets To Increase Private Investment in Environmental Stewardship," Economic Research Report 56473, United States Department of Agriculture, Economic Research Service.
    14. Kurt Stephenson & Patricia Norris & Leonard Shabman, 1998. "Watershed-Based Effluent Trading: The Nonpoint Source Challenge," Contemporary Economic Policy, Western Economic Association International, vol. 16(4), pages 412-421, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Raper, Kellie Curry & Love, H. Alan, 1999. "MONOPSONY POWER IN MULTIPLE INPUT MARKETS: A Nonparametric Approach," Staff Papers 11656, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Aldaz, Natalia & Millan, Joaquin A., 2003. "Analisis Malmquist y DEA intertermporal de las agriculturas de la Union Europea," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 3(06).
    3. Dong, Fengxia & Fuller, Frank H., 2004. "Testing For Separability And Structural Change In Urban Chinese Food Demand," 2004 Annual meeting, August 1-4, Denver, CO 19923, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Rickertsen, Kyrre, 1998. "The demand for food and beverages in Norway," Agricultural Economics, Blackwell, vol. 18(1), pages 89-100, January.
    5. Kellie Curry Raper & H. Alan Love, 2007. "Market power in tobacco: Measuring multiple markets," Agribusiness, John Wiley & Sons, Ltd., vol. 23(1), pages 35-55.
    6. Natalia Aldaz & Joaquín A. Millán, 2003. "A Comparison of Agricultural Productivity in the European Union Regions," ERSA conference papers ersa03p223, European Regional Science Association.
    7. Managi, Shunsuke & Jena, Pradyot Ranjan, 2008. "Environmental productivity and Kuznets curve in India," Ecological Economics, Elsevier, vol. 65(2), pages 432-440, April.
    8. Cox, Thomas L. & Mullen, John D. & Hu, Wensheng, 1997. "Nonparametric measures of the impact of public research expenditures on Australian broadacre agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(3), September.
    9. THOMAS COX & John Mullen & Wensheng Hu, 1996. "Nonparametric Measures of the Impacts of Public Research Expenditures on Australian Broadacre Agriculture: Preliminary Results," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 399, Wisconsin-Madison Agricultural and Applied Economics Department.
    10. Aldaz, Natalia & Millán, Joaquín, 2002. "An Inter-Country Comparison of Agricultural Productivity with Intertemporal DEA," Efficiency Series Papers 2002/09, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    11. Jena, Pradyot Ranjan, 2009. "Estimating environmental efficiency and Kuznets curve for India," 2009 Conference, August 16-22, 2009, Beijing, China 51302, International Association of Agricultural Economists.
    12. Thomas COX & John MULLEN & Wensheng HU, 1996. "Nonparametric Measures Of The Impacts Of Public Research Expenditures On Australian Broadacre Agriculture: Preliminary Results," Staff Papers 399, University of Wisconsin Madison, AAE.
    13. Chalfant, James A. & Eshel, Dafna M. Disegni, 2001. "A Nonparametric Test Of Advertising'S Effectiveness," 2001 Annual meeting, August 5-8, Chicago, IL 20529, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:79:y:1997:i:4:p:1164-1176. 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: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.