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Multilateral productivity comparisons and homotheticity

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  • A. Peyrache

    () (CEPA - School of Economics, The University of Queensland)

Abstract

In this paper it is shown that a well known procedure (GEKS) of transitivizing a bilateral system of productivity comparisons is implicitly a way of imposing a homothetic structure onto the data. The main implication of this result is that deviations between the bilateral and the multilateral (GEKS) indexes can be interpreted as a measure of local deviation from the homothetic assumption. This establishes an additional link between homotheticity and transitivity

Suggested Citation

  • A. Peyrache, 2010. "Multilateral productivity comparisons and homotheticity," CEPA Working Papers Series WP112010, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uqcepa:57
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    File URL: http://www.uq.edu.au/economics/cepa/docs/WP/WP112010.pdf
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