SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

The introduction of real-cash balances into the neoclassical model of the consumer wrecks havoc, in general, on the empirically observable refutable comparative statics properties of the model. We provide the most general solution of this problem to date by deriving a symmetric and negative semidefinite generalized Slutsky matrix that is empirically observable and which contains all other such comparative statics results as a special case. In addition, we clarify and correct two aspects of Samuelson and Satos (1984) treatment of this problem.

A Nonlinear Generalized Additive Error Model of Production and Cost

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 2001

URL: http://purl.umn.edu/11953

In 1944, Marschak and Andrews published a seminal paper on how to obtain consistent estimates of a production technology. The original formulation of the econometric model regarded the joint estimation of the production function together with the first-order necessary conditions for profit-maximizing behavior. In the seventies, with the advent of econometric duality, the preference seemed to have shifted to a dual approach. Recently, however, Mundlak resurrected the primal-versus-dual debate with a provocative paper titled “Production Function Estimation: Reviving the Primal.” In that paper, the author asserts that the dual estimator, unlike the primal approach, is not efficient because it fails to utilize all the available information. In this paper we...

SENSITIVITY OF THE GME ESTIMATES TO SUPPORT BOUNDS

Palavras-chave: Primal; Dual; Cobb-Douglas; Nonlinear errors-in-variables; Productivity Analysis; Research Methods/ Statistical Methods; D0; C3.

Ano: 2004

URL: http://purl.umn.edu/93743

The claim has been made that the Generalized Maximum Entropy (GME) estimator of Golan, Judge and Miller is not sensitive to variations in the support bounds of either the parameters or the error terms. In this paper, we scrutinized this claim by means of Monte Carlo experiments and found that the parameter estimates are impacted in a substantial way by these changes. We also analyzed the famous data sample on the US manufacturing industry used by Cobb and Douglas in 1934 and found that the GME estimator is very sensitive to changes in support bounds. We conclude with a general result by Caputo and Paris according to which any support bound variation produces unexpected responses in the parameter estimates.

EFFICIENT ESTIMATES OF A MODEL OF PRODUCTION AND COST

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 2001

URL: http://purl.umn.edu/11966

A PRIMAL-DUAL ESTIMATOR OF PRODUCTION AND COST FUNCTIONS WITHIN AN ERRORS-IN-VARIABLES CONTEXT

In 1944, Marschak and Andrews published a seminal paper on how to obtain consistent estimates of a production technology. The original formulation of the econometric model regarded the joint estimation of the production function together with the first-order necessary conditions for profit-maximizing behavior. In the seventies, with the advent of econometric duality, the preference seemed to have shifted to a dual approach. Recently, however, Mundlak resurrected the primal-versus-dual debate with a provocative paper titled "Production Function Estimation: Reviving the Primal." In that paper, the author asserts that the dual estimator, unlike the primal approach, is not efficient because it fails to utilize all the available information. In this paper...

Tipo: Conference Paper or Presentation

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 2004

URL: http://purl.umn.edu/20358

In 1944, Marschak and Andrews published a seminal paper on how to obtain consistent estimates of a production technology. The original formulation of the econometric model regarded the joint estimation of the production function together with the first-order necessary conditions for profit-maximizing behavior. In the seventies, with the advent of econometric duality, the preference seemed to have shifted to a dual approach. Recently, however, Mundlak resurrected the primal-versus-dual debate with a provocative paper titled Production Function Estimation: Reviving the Primal. In that paper, the author asserts that the dual estimator, unlike the primal approach, is not efficient because it fails to utilize all the available information. In this paper we...

A NONPARAMETRIC EFFICIENCY ANALYSIS OF CALIFORNIA COTTON GINNING COOPERATIVES

Palavras-chave: Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods.

Ano: 2004

URL: http://purl.umn.edu/11975

Caputo, Michael R.; Lynch, Lori.

In the spirit of Leamer's commitment to sensitivity analysis, we employ Farrell's nonparametric efficiency methodology and compare our results with those of Sexton, Wilson, and Wann. Testing the implicit assumption of technical efficiency in the methodology employed by Sexton, Wilson, and Wann, we find that the lack of technical efficiency is the cotton gins' main cause of overall inefficiency. We extend the nonparametric methodology by subjecting the shadow prices of technical efficiency to nonparametric statistical tests to draw stronger conclusions. In addition, the nonparametric methodology permits us to make gin-specific recommendations to improve the performance of the gins.

Tipo: Journal Article

Palavras-chave: Agribusiness.

Ano: 1993

URL: http://purl.umn.edu/30966

A Dual Approach to Estimation With Constant Prices

In a recent paper, Mundlak assumes that the price-taking, risk-neutral and profit-maximizing entrepreneur makes his decisions on the basis of a planning model that maximizes expected profit using expected prices. In the same paper, the author asserts that when there is no sample price variation across competitive firms, it is impossible to estimate the supply and factor demand functions from cross-section data using a dual approach. In a famous paper, titled “To Dual or not to Dual,” Pope asserted a similar opinion. This paper shows that, using Mundlak’s assumption about planning decisions based upon expected profit, it is possible to use a dual estimator to estimate supply and factor demand functions. This objective is achieved by using Mundlak’s...

Palavras-chave: Constant prices; Dual approach; Cobb-Douglas; Nonlinear errors-in-variables; Demand and Price Analysis; Research Methods/ Statistical Methods; D0; C3.

Ano: 2003

URL: http://purl.umn.edu/93740

THE RHETORIC OF DUALITY

A Recurrent Utility Function of Fictitious Generality

Agricultural economists' view of duality has often assumed the characteristics of an ambivalent relation. During the eighties, several authors published papers which put in doubt this or that aspects of duality. This study emphasizes the notion that duality is a time-honored approach suitable for solving problems that can be expressed mathematically. Contrary to many assertions that appeared in the agricultural economics literature, duality does not seem to suffer from any theoretical limitations any more than does the formulation of the primal problem. The article presents two problems that can be solved with dual methods. The authors are incapable of deriving the same results using primal approach.

Tipo: Journal Article

Palavras-chave: Research Methods/ Statistical Methods.

Ano: 1995

URL: http://purl.umn.edu/30933

For the past twenty-five years, Dusansky and his associated co-authors have published a longseries of papers which are based on the same price-dependent utility function. The alleged price dependence, however, is fictitious in the sense that the level of exogenous money income can replace the commodity prices. The consequence is that the demand functions derived from Dusansky's utility function are identical and observationally equivalent to the demand functions obtained from a prototypical utility function. Since all the market and environmental effects are revealed only through the demand functions, the specification and use of a utility function such as that used by Dusansky is irrelevant and uninformative for the analysis of any economic problem where...

AN ATEMPORAL MICROECONOMIC THEORY AND AN EMPIRICAL TEST OF PRICE-INDUCED TECHNICAL PROGRESS

Palavras-chave: Demand and Price Analysis.

Ano: 1999

URL: http://purl.umn.edu/11971

Caputo, Michael R.; Paris, Quirino.

An exhaustive comparative statics analysis of a general price taking cost-minimizing model of the firm operating under the influence of price-induced technical progress is carried out from a dual vista. The resulting refutable implications are observable and thus amenable to empirical verification, and take on the form of a symmetric and negative semidefinite matrix. Using data from individual cotton gins in Californias San Joaquin Valley, we empirically test the complete set of implications of the price-induced technical progress theory using both classical and Bayesian statistical procedures. We find that the data are fully consistent with the atemporal, costminimizing, price-induced microeconomic theory of technical progress.

THE ECONOMIC RECORD VERSUS AER: TWENTY SIX YEARS AHEAD ON THE MONEY-GOODS MODEL

Palavras-chave: Research and Development/Tech Change/Emerging Technologies.

Ano: 2004

URL: http://purl.umn.edu/11992

We prove that the symmetric and negative semidefinite modified Slutsky matrix derived by Samuelson and Sato (1984) for the money-goods model of the consumer, is identical to that derived by Pearce (1958) a quarter century before and restated sixteen years later by Berglas and Razin (1974). We also prove that these conditions are only sufficient for the problem at hand and are encompassed by a more general, modified Slutsky matrix that is necessary and sufficient as derived by Paris and Caputo (2001). These results have crucial relevance for test-ing the implications of consumer behavior.

Efficient Estimates of a Model of Production and Cost

Palavras-chave: Consumer/Household Economics; Research Methods/ Statistical Methods.

Ano: 2001

URL: http://purl.umn.edu/11949

In 1944, Marschak and Andrews published a seminal paper on how to obtain consistent estimates of a production technology. The original formulation of the econometric model regarded the joint estimation of the production function together with the first-order necessary conditions for profit-maximizing behavior. In the seventies, with the advent of duality theory, the preference seemed to have shifted to a dual approach. Recently, however, Mundlak resurrected the primal-versus-dual debate with a provocative paper titled “Production Function Estimation: Reviving the Primal.” In that paper, the author asserts that the dual estimator, unlike the primal approach, is not efficient because it fails to utilize all the available information. In this paper we argue...