Testing for production with complementarities
Suppose we observe a finite number of input decisions made by a firm, as well as the prices at which those inputs were acquired. What conditions on the set of observations are necessary and sufficient for it to be consistent with a firm choosing inputs to maximize profit, subject to a production function exhibiting production complementarities? In this paper, we develop an axiomatic characterisation of this hypothesis and also develop a test that can be easily applied to finite data sets.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
| Length: | |
| Date of creation: | 10 Sep 2014 |
| Handle: | RePEc:oxf:wpaper:722 |
| Contact details of provider: | Postal: Manor Rd. Building, Oxford, OX1 3UQ Web page: https://www.economics.ox.ac.uk/ Email: More information through EDIRC
|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dziewulski, Pawel, 2014.
"Revealed time-preference,"
MPRA Paper
56596, University Library of Munich, Germany.
- Pawel Dziewulski, 2015. "Revealed time-preference," Economics Series Working Papers 748, University of Oxford, Department of Economics.
- Christopher Chambers & Federico Echenique, 2009. "Profit maximization and supermodular technology," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(2), pages 173-183, August.
- Donald Brown & Caterina Calsamiglia, 2007. "The Nonparametric Approach to Applied Welfare Analysis," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(1), pages 183-188, April.
- Donald J. Brown & Caterina Calsamiglia, 2005. "The Nonparametric Approach to Applied Welfare Analysis," Cowles Foundation Discussion Papers 1507, Cowles Foundation for Research in Economics, Yale University.
- Rochet, Jean-Charles, 1987. "A necessary and sufficient condition for rationalizability in a quasi-linear context," Journal of Mathematical Economics, Elsevier, vol. 16(2), pages 191-200, April. Full references (including those not matched with items on IDEAS)