IDEAS home Printed from https://ideas.repec.org/p/umc/wpaper/1611.html
   My bibliography  Save this paper

Verifying Curvature of Profit and Cost/Expenditure Functions

Author

Listed:
  • David M. Mandy

    (Department of Economics, University of Missouri)

Abstract

Convexity or concavity of optimal value functions is sometimes checked by evaluating leading principal minors of the Hessian matrix. This practice is not justified by extant theorems about semidefinite matrices. A theorem is presented that justifies the practice and provides a relatively easy method of proving the relationship between semidefiniteness and principal minors.

Suggested Citation

  • David M. Mandy, 2016. "Verifying Curvature of Profit and Cost/Expenditure Functions," Working Papers 1611, Department of Economics, University of Missouri, revised 17 Apr 2017.
    • Handle: RePEc:umc:wpaper:1611
    as

    Download full text from publisher

    File URL: https://drive.google.com/file/d/1mqmqqU8aU0mGOQ-wcQjDa9-HgwhLI9-V/view?usp=sharing
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fuente,Angel de la, 2000. "Mathematical Methods and Models for Economists," Cambridge Books, Cambridge University Press, number 9780521585293.
    2. Abadir,Karim M. & Magnus,Jan R., 2005. "Matrix Algebra," Cambridge Books, Cambridge University Press, number 9780521537469.
    3. repec:cup:cbooks:9780521822893 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kaplan, David M. & Zhuo, Longhao, 2021. "Frequentist properties of Bayesian inequality tests," Journal of Econometrics, Elsevier, vol. 221(1), pages 312-336.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Håvard Hungnes, 2011. "A demand system for input factors when there are technological changes in production," Empirical Economics, Springer, vol. 40(3), pages 581-600, May.
    2. Xu, Zhengtian & Yin, Yafeng & Zha, Liteng, 2017. "Optimal parking provision for ride-sourcing services," Transportation Research Part B: Methodological, Elsevier, vol. 105(C), pages 559-578.
    3. Millock, Katrin & Xabadia, Angels & Zilberman, David, 2012. "Policy for the adoption of new environmental monitoring technologies to manage stock externalities," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 102-116.
    4. Håvard Hungnes, 2016. "Using common factors to identify substitution possibilities in a factor demand system with technological changes," Discussion Papers 849, Statistics Norway, Research Department.
    5. Caner, Mehmet & Yıldız, Neşe, 2012. "CUE with many weak instruments and nearly singular design," Journal of Econometrics, Elsevier, vol. 170(2), pages 422-441.
    6. Terstiege, Stefan, 2013. "Precontractual Investigation and Sequential Screening," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 429, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    7. Francesco Caruso & Maria Carmela Ceparano & Jacqueline Morgan, 2017. "Uniqueness of Nash Equilibrium in Continuous Weighted Potential Games," CSEF Working Papers 471, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 18 Jun 2017.
    8. Caner, Mehmet & Fan, Qingliang, 2015. "Hybrid generalized empirical likelihood estimators: Instrument selection with adaptive lasso," Journal of Econometrics, Elsevier, vol. 187(1), pages 256-274.
    9. Halbert White & Karim Chalak, 2013. "Identification and Identification Failure for Treatment Effects Using Structural Systems," Econometric Reviews, Taylor & Francis Journals, vol. 32(3), pages 273-317, November.
    10. Kenan Huremović, 2021. "A noncooperative model of contest network formation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(2), pages 275-317, April.
    11. Todorova, Tamara, 2013. "Solving optimal timing problems elegantly," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 4(6), pages 95-105.
    12. John Stachurski, 2009. "Economic Dynamics: Theory and Computation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012774, April.
    13. Jagjit S. Chadha, 2009. "Monetary Policy Analysis: An Undergraduate Toolkit," Palgrave Macmillan Books, in: Giuseppe Fontana & Mark Setterfield (ed.), Macroeconomic Theory and Macroeconomic Pedagogy, chapter 3, pages 55-75, Palgrave Macmillan.
    14. Battey, Heather & Linton, Oliver, 2014. "Nonparametric estimation of multivariate elliptic densities via finite mixture sieves," Journal of Multivariate Analysis, Elsevier, vol. 123(C), pages 43-67.
    15. Ishihara, Tsunehiro & Omori, Yasuhiro & Asai, Manabu, 2016. "Matrix exponential stochastic volatility with cross leverage," Computational Statistics & Data Analysis, Elsevier, vol. 100(C), pages 331-350.
    16. Xabadia, Angels & Goetz, Renan U. & Zilberman, David, 2006. "Control of accumulating stock pollution by heterogeneous producers," Journal of Economic Dynamics and Control, Elsevier, vol. 30(7), pages 1105-1130, July.
    17. Terstiege, Stefan, 2016. "Gathering imperfect information before signing a contract," Games and Economic Behavior, Elsevier, vol. 97(C), pages 70-87.
    18. Juan Carlos Escanciano & Wei Li, 2013. "On the identification of structural linear functionals," CeMMAP working papers CWP48/13, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    19. Beker, Pablo F. & Cuevas, Conrado, 2018. "The social value of information in economies with mandatory savings," CRETA Online Discussion Paper Series 40, Centre for Research in Economic Theory and its Applications CRETA.
    20. King, Maia, 2020. "The probabilities of node-to-node diffusion in fixed networks," SocArXiv dfq8y, Center for Open Science.

    More about this item

    Keywords

    Profit/Cost/Expenditure Function; Semidefinite Hessian; Principal Minors;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:umc:wpaper:1611. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chao Gu (email available below). General contact details of provider: https://edirc.repec.org/data/edumous.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.