- Library Home /
- Search Collections /
- Open Collections /
- Browse Collections /
- UBC Theses and Dissertations /
- Nonparametric tests of regularity conditions for production...
Open Collections
UBC Theses and Dissertations
UBC Theses and Dissertations
Nonparametric tests of regularity conditions for production and consumption theory Parkan, Celik
Abstract
The theories of production and consumption have proven to be valuable tools in predicting variations in demand for factors of production (producer's demand) and for produced goods (consumer's demand) to changes in policy instruments. An important direction of inquiry, in the theory of production, has been on determining the functional form of production; another one, in the theory of consumption, has been on the observed behaviour of the consumer and the computation of index numbers. Econometricians, in estimating a production function, have been using parametric estimation techniques which always require the choice of a functional form for the underlying production operation. Also the classical assumption about the consumer has been that any purchase is such as to give a maximum of utility for the money spent. It is well known that economic agents' (producers' and consumers') optimizing behaviour implies certain restrictions on derived supply and demand patterns; e.g., see P.A. Samuelson or J.R. Hicks. Typical functional forms, for production, often used in empirical applications are either unsuitable for modelling the demand for factors of production or they do not always satisfy the regularity conditions that cost minimizing or profit maximizing behaviour imposes. Neither have econometricians always checked whether these restrictions are consistent with the functional forms for demand and supply equations which they use in their applied econometric work. This dissertation studies the nonparametric methods for testing the consistency of observations on quantities, prices, profits, costs and appropriate combinations of these with such regularity conditions as monotonicity, quasi-concavity, concavity, homotheticity, and separability. The approach has been that of unifying the existing body of knowledge in using linear programming as the test instrument and making extensions especially to cover multiple production, separability properties and nonparametric index numbers. The theoretical work has been substantiated by empirical tests on actual data and the computer codes are presented to facilitate further research in related areas.
Item Metadata
Title |
Nonparametric tests of regularity conditions for production and consumption theory
|
Creator | |
Publisher |
University of British Columbia
|
Date Issued |
1975
|
Description |
The theories of production and consumption have proven to be valuable tools in predicting variations in demand for factors of production (producer's demand) and for produced goods (consumer's demand) to changes in policy instruments. An important direction of inquiry, in the theory of production, has been on determining the functional form of production; another one, in the theory of consumption, has been on the observed behaviour of the consumer and the computation of index numbers.
Econometricians, in estimating a production function, have been using parametric estimation techniques which always require the choice of a functional form for the underlying production operation. Also the classical assumption about the consumer has been that any purchase is such as to give a maximum of utility for the money spent. It is well known that economic agents' (producers' and consumers') optimizing behaviour implies certain restrictions on derived supply and demand patterns; e.g., see P.A. Samuelson or J.R. Hicks. Typical functional forms, for production, often used in empirical applications are either unsuitable for modelling the demand for factors of production or they do not always satisfy the regularity conditions that cost minimizing or profit maximizing behaviour imposes. Neither have econometricians always checked whether these restrictions are consistent with the functional forms for demand and supply equations which they use in their applied econometric work. This dissertation studies the nonparametric methods for testing
the consistency of observations on quantities, prices, profits, costs and appropriate combinations of these with such regularity conditions as monotonicity, quasi-concavity, concavity, homotheticity, and separability. The approach has been that of unifying the existing body of knowledge in using linear programming as the test instrument and making extensions especially to cover multiple production, separability properties and nonparametric index numbers. The theoretical work has been substantiated by empirical tests on actual data and the computer codes are presented to facilitate further research in related areas.
|
Genre | |
Type | |
Language |
eng
|
Date Available |
2010-02-08
|
Provider |
Vancouver : University of British Columbia Library
|
Rights |
For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use.
|
DOI |
10.14288/1.0100108
|
URI | |
Degree | |
Program | |
Affiliation | |
Degree Grantor |
University of British Columbia
|
Campus | |
Scholarly Level |
Graduate
|
Aggregated Source Repository |
DSpace
|
Item Media
Item Citations and Data
Rights
For non-commercial purposes only, such as research, private study and education. Additional conditions apply, see Terms of Use https://open.library.ubc.ca/terms_of_use.