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Generalization of Nonparametric Tests for Homothetic Production

By Elvira Silva and Spiro E. Stefanou

Abstract

The nonparametric tests for homotheticity proposed by Hanoch and Rothschild and by Varian (1984) are a special case of the tests proposed in this paper. The previous tests are generalized by relaxing the linear homogeneity assumption. A range for the degree of homogeneity as well as a region for the input demands are constructed using a dual approach. Copyright 1996, Oxford University Press.

DOI identifier: 10.2307/1243272
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