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Testing Hypotheses of Functional Structure: Some Rules for Determining Flexibility of Restricted Production Models

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  • Paul Driscoll
  • Jeff Alwang
  • Anya McGuirk

Abstract

Rules are proposed to help determine whether a production function maintains flexibility under parametric restrictions required to impose homogeneity, homotheticity, and forms of separability. After imposing restrictions and applying the rules, many second-order "flexible" forms are found to be more inflexible than formerly believed.

Suggested Citation

  • Paul Driscoll & Jeff Alwang & Anya McGuirk, 1992. "Testing Hypotheses of Functional Structure: Some Rules for Determining Flexibility of Restricted Production Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 100-108.
    • Handle: RePEc:oup:ajagec:v:74:y:1992:i:1:p:100-108.
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    File URL: http://hdl.handle.net/10.2307/1242994
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    Cited by:

    1. Severance-Lossin, E. & Sperlich, S., 1995. "Estimation of Derivatives for Additive Separable Models," SFB 373 Discussion Papers 1995,60, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    2. Byiringiro, Fidele & Reardon, Thomas, 1996. "Farm productivity in Rwanda: effects of farm size, erosion, and soil conservation investments," Agricultural Economics, Blackwell, vol. 15(2), pages 127-136, November.
    3. Adam N. Smith & Peter E. Rossi & Greg M. Allenby, 2019. "Inference for Product Competition and Separable Demand," Marketing Science, INFORMS, vol. 38(4), pages 690-710, July.
    4. Ragnar Tveteras & Ola Flaten & Gudbrand Lien, 2011. "Production risk in multi-output industries: estimates from Norwegian dairy farms," Applied Economics, Taylor & Francis Journals, vol. 43(28), pages 4403-4414.
    5. Ragnar Tveteros, 1999. "Production Risk and Productivity Growth: Some Findings for Norwegian Salmon Aquaculture," Journal of Productivity Analysis, Springer, vol. 12(2), pages 161-179, September.
    6. Ragner Tveterås & G. H. Wan, 2000. "Flexible panel data models for risky production technologies with an application to salmon aquaculture," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 367-389.
    7. Asche, Frank & Tveteras, Ragnar, 1999. "Modeling Production Risk With A Two-Step Procedure," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-16, December.

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