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Direct Separability in Multi-output Technologies: An Application to the Italian Agricultural Sector

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  • Sckokai, Paolo
  • Moro, Daniele

Abstract

The hypothesis of direct weak separability of the transformation function places fewer restrictions on production technology than those deriving from alternative multistage procedures based on indirect separability assumptions. We derive an explicit form of the necessary and sufficient conditions for direct weak separability in the multiple output case. These conditions are expressed in elasticity terms so they can be readily maintained or tested in commonly used flexible functional forms. Parametric restrictions are derived for the multi-output translog profit function. The procedure is applied to the Italian agricultural sector. Copyright 1996 by Oxford University Press.

Suggested Citation

  • Sckokai, Paolo & Moro, Daniele, 1996. "Direct Separability in Multi-output Technologies: An Application to the Italian Agricultural Sector," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 23(1), pages 95-116.
    • Handle: RePEc:oup:erevae:v:23:y:1996:i:1:p:95-116
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    Cited by:

    1. Shumway, C. Richard & Davis, George C., 2001. "Does consistent aggregation really matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-34.
    2. Jesse B. Tack & Rulon D. Pope & Jeffrey T. LaFrance & Ricardo H. Cavazos, 2015. "Modelling an aggregate agricultural panel with application to US farm input demands," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(3), pages 371-396.
    3. Qinghua Liu & C. Richard Shumway, 2004. "Testing aggregation consistency across geography and commodities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(3), pages 463-486, September.
    4. Figueiredo, Adriano Marcos Rodrigues & Bonjour, Sandra Cristina de Moura & Teixeira, Erly Cardoso & Helfand, Steven M., 2011. "Spatial analysis of agricultural supply response in the Brazilian Center-West," Economi­a Agraria (Revista Economia Agraria), Agrarian Economist Association (AEA), Chile, vol. 15, pages 1-13.
    5. Figueiredo, Adriano Marcos Rodrigues & Bonjour, Sandra Cristina de Moura & Teixeira, Erly Cardoso & Helfand, Steven M., 2011. "Spatial analysis of agricultural supply response in the Brazilian Center-West," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 15.
    6. Baardsen, Sjur, 8. "Profit Efficiency in Norwegian Timber Supply: A Stochastic Frontier Function for Active NIPFs," Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics, Scandinavian Society of Forest Economics, issue 41, May.
    7. Sckokai, Paolo, 2001. "The Common Agricultural Policy In Econometric Models," Working Papers 14800, National Institute of Agricultural Economics, Italy - INEA, Osservatorio Sulle Politiche Agricole dell'UE.

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