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State-Level Nonparametric Tests Of Profit Maximization

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  • Lim, Hongil
  • Shumway, C. Richard

Abstract

A nonparametric analysis of agricultural production behavior was conducted for each of the contiguous 48 states to test· the joint hypothesis of profit maximization, convex technology, and nonregressive technical change. With minor to modest measurement error, the results are consistent with the joint hypothesis. They further document the importance· of considering geographic variability in agriculture production behavior when modeling production relationships or government policies affecting production at the regional or national level.

Suggested Citation

  • Lim, Hongil & Shumway, C. Richard, 1989. "State-Level Nonparametric Tests Of Profit Maximization," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270494, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea89:270494
    DOI: 10.22004/ag.econ.270494
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    References listed on IDEAS

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